April has been a bleak month for tech, with Apple, Microsoft, Amazon, Alphabet and Tesla poised to lose a combined $1 trillion.
Shares of Amazon.com Inc. are falling on Friday, with the e-commerce company seeing its biggest intraday percentage drop since October 2011 after it gave an outlook that was seen as disappointing.
The shares fell as much as 13%, taking them to their lowest level since June 2020. The sale wiped more than $178 billion from the company’s market valuation. Amazon shares fell more than 20% in the month, their biggest monthly percentage drop since December 2018.
The drop represents the latest blow to Wall Street’s biggest names, which came under heavy pressure in April amid a tumultuous earnings season and concerns about Federal Reserve policy. The Nasdaq 100 Index has fallen 11% this month, wiping $1.75 trillion from the tech index’s market capitalization.
Analysts at Amazon were negative on the report, and Wells Fargo Securities was one of several companies that cut their price target on the stock.
“We think the company is likely experiencing weakening demand, at least at the margin,” wrote analyst Brian Fitzgerald, who lowered his target to $4,000 from $4,250. He sees positive long-term prospects, but expects cost headwinds to weigh on operating income in the short term.
Alphabet Inc. shares fell as much as 17% for the month of April, with Google’s parent company headed for its biggest monthly percentage loss since March 2020. The company has wiped out more than $300 billion in market value. during the month of April. with weak first-quarter earnings weighing on stocks this week.
Among other names, Apple Inc. fell 1.4% on Friday after the iPhone maker reported its results and warned of the impact supply restrictions would have on revenue. For the month, Apple fell as much as 7.9%, heading for its biggest one-month drop since February 2021.
Microsoft Corp. fell 2% on Friday. The software giant plunged as much as 8.1% in April, poised to experience its worst drop since December 2018, even after reporting results that were seen as strong. Meta Platforms Inc. is down as much as 8.4% in April, even with a big surge following Thursday’s results.
(Updates the trade at all times).
–With the assistance of Subrat Patnaik.