Due to Apple, Amazon shares fall after earnings, Stock futures drop

Stock futures dipped Thursday evening, with investors eyeing some disappointing earnings results from Amazon (AMZN), and Apple (AAPL) which punctuated an otherwise solid quarterly reporting season from several major companies. 

The contract fell on the S&P 500, pulled back after the blue-chip index closed at a record high on Thursday. Nasdaq futures underperformed amid declines in big technology names.

Amazon shares were up late in trading after the e-commerce juggernaut missed third-quarter expectations and forecast a jump in expenses in the fourth quarter due to supply chain disruptions and rising costs of labor, materials and goods. These factors are expected to generate “several billions of dollars in additional costs” to Amazon in the current quarter, the company said in its earnings statement.

Peer tech giant Apple also disappointed Wall Street in its fiscal first-quarter results, with sales of the flagship iPhone missing expectations, even after the launch of its latest iPhone 13 handset series. Shares of Apple’s suppliers, including Qualcomm (QCOM), Taiwan Semiconductor Manufacturing Company (TSM), and Broadcom (AVGO), also fell soon after the results.

For Wall Street, the results appeared to justify concerns that rising supply chain disruptions, labor costs and material shortages were affecting companies of all sizes heading into the holiday season, and keeping pace with rising demand. were creating challenges for corporations to keep.

And for Apple, Amazon and some other technology companies, investors are additionally fearful that these key members of last year’s lucrative “stay-at-home” business will sustain lofty growth rates after a pandemic-induced boom in their businesses. will be unable to keep. Amazon sales grew 15% in the third quarter, slowing significantly from the 27% rate in the second quarter.

Leave a Reply

Your email address will not be published.