Shares in Amazon dive 20%: Online retail giant adds to tech sector’s doom and gloom as shares fall by almost a fifth
Amazon added to the tech sector’s doom and gloom as shares fell by almost a fifth last night.
The online retail giant saw shares crash by as much as 20 per cent in after-hours trading as it warned sales in the crucial Christmas quarter would disappoint.
Amazon forecast net sales of between £121billion and £128billion for the last three months of 2022. Analysts were expecting £134billion.
Gloom: The online retail giant saw shares crash by as much as 20 per cent in after-hours trading as it warned sales in the crucial Christmas quarter would disappoint
The world’s biggest online retailer has been grappling with spiralling costs while a squeeze on family finances has seen a drop in consumer spending. It is also facing intense competition from rivals including US retail giant Walmart, weighing on its sales.
Amazon said net sales rose 15 per cent to £110billion in the three months to September 30. Its profit in the quarter slipped from £2.8billion last year to £2.5billion as soaring costs took their toll. The crash wiped more than $200billion from the company’s value. It came after a devastating week and before the updates shares of US tech giants had already lost almost $3trillion of value this year.
Meanwhile Apple gave investors some respite, with shares dipping just 0.5 per cent after US markets closed. The iPhone maker said sales hit a record high of £78billion, up 8 per cent from a year earlier. Boss Tim Cook said it was heading into the Christmas period with its ‘most powerful line up’ of products ever.