Amazon, Google and Snap shares decline after earnings reports
S E E D E D C O N T E N T
Shares in Google, Amazon and Snap all declined on Thursday afternoon after issuing quarterly earnings reports, adding to recent struggles for tech stocks.
Amazon shares were down about 4.3 percent in after-hours trading after reporting disappointing growth in its cloud business Amazon Web Services, or AWS. The cloud division is a major part of the company's business, which is primarily known for its consumer e-commerce operations.
Amazon shares declined despite the company reporting profit of $2.9 billion, the fourth-straight quarter of at least $1 billion of profit.
Alphabet, Google's parent company, declined almost 4 percent in after-hours trading after reporting third-quarter revenue that also missed analyst expectations , though it easily beat earnings estimates.
Google said its stockpile of cash grew to $106.4 billion.
On Thursday, the company also said that it had fired 48 people in the past two years for sexual harassment , an announcement that came after The New York Times published an article about senior Google execs that were given sizable exit packages following misconduct allegations.
Snap, the parent company of Snapchat, added to the tech industry's struggles. Snap shares were down 3 percent in after-hours trading after reporting a slight decline in total users .
The company did, however, report growth in its revenue.
"We achieved record revenue and strong bottom-line results this quarter and expect a record fourth quarter, as we continue to invest in innovation for our community and scale our business," Tim Stone, Snap's chief financial officer, said in a press release .
Shares in tech companies have floundered in recent weeks amid broader stock market declines. CNBC reported on Wednesday that 80 percent of technology stocks were in correction territory, a term for when shares decline at least 10 percent .
While the major tech companies declined after earnings reports, the tech-heavy Nasdaq Composite index rebounded during Thursday trading, adding almost 3 percent.
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Has tech saturated the market or are other factors playing into this decline?
I have said it before yet I think the market values are over inflated.
The market made gains today but the DOW still did not get back over 25.
Value cannot continue to rise forever, with no end in sight.
I tend to agree Ender. But other stock are hitting all time highs while the tech industry suddenly kind of bottomed out. There is something more to this.
I always wondered how tech stock can be worth so much anyway.
Things like facebook and instagram do not offer any actual, what is the word, production. They do not really offer anything of value. Just a website.
IMO: After the couple of huge bounches we've had; the election of trump and the tax breaks the conservatives have wanted for years the honeymoon may be coming to an end. What we're looking at now is hard work, time and negotiating going forward. And this election with the balance of power once again at stake. Uncertainty in the market usually isn't a good thing.
The foundation is good, the attitude tough drives the market these days, that's why I pulled out, Incorrectly or not.
So far the DOW is down 500 points today.
I have seen fluctuations like this in the past and it meant nothing. Tell me we went down 1000 points and I'll be worried.
Yeah, I was looking at volume.