On Thursday, stocks of Amazon.com, Inc. tumbled in extended trading after its third-quarter 2021 results badly missed market estimates.
Accordingly, the e-commerce giant slumped 4.00% or 137.81 points to $3,308.76 per share. It also opposed its gain of 1.59% or 54.08 points to $3,446.57 per share yesterday.
Overall, Amazon’s stocks garnered a total return of 8.90%, lower than the S&P 500’s total return of 40.50%.
In its latest report, its revenue sharply declined 37.00% to $3.20 billion year-over-year.
Consequently, it came in lower than the analysts’ estimate of $111.60 billion.
Subsequently, its earnings plummeted 50.50% to $6.12 per diluted share from the $12.37 per diluted share in Q3 2020.
At the same time, it failed to touch the projected $8.92 per diluted share.
On the positive side, Amazon Web Services (AWS) revenue hiked 38.90% to $16.10 billion year-over-year, surpassing the expected $15.50 billion.
According to the firm, the supply chain crunch decelerated its sales growth in the last quarter.
In addition, consumers go back to physical stores as pandemic restrictions ease.
Amazon posted its net sales guidance between $130.00 billion and $140.00 billion for the fourth quarter, representing 4% to 12% growth.
Meanwhile, analysts expected an increase of 13.20% year-over-year to $142.10 billion.
Moreover, its CEO Andy Jassy warned Wall Street that the company anticipates spending billions of dollars in extra costs in its consumer business.
This is a result of the persisting issues in the market, such as labor shortages, global supply chain constraints, and higher freight and shipping costs.
Furthermore, Amazon reassured that it is currently navigating these challenges as it enters the peak holiday season.
Meanwhile, US index futures declined as shares of highly-valued tech companies dropped following downbeat earnings reports.
Correspondingly, contracts on the Dow Jones Industrial Average dipped 0.23% or 0.84 points to $35,526.00 per share.
Likewise, the Nasdaq futures curtailed 0.78% or 122.25 points to $15,642.00 per share.
Similarly, the S&P 500 futures dwindled 0.47% or 21.75 points to $4,566.00 per share.
Following the plunge of Amazon, Apple plummeted 3.53% or 5.38 points to $147.19 per share. It reversed its Thursday gain of 2.50% or 3.72 points to $152.57 per share.
Subsequently, the decline came after the iPhone maker’s quarterly revenue missed expectations.
Consequently, this is amid the stronger-than-expected supply woes on its iPhones, iPads, and Macs.
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