Weak Amazon outlook another blow to tech-related growth stocks

Amazon.com Inc shares skidded as much as 21% after hours after it forecast costs might eviscerate its profit for the current quarter, as early holiday marketing does little to boost sales growth and as labor and delivery expenses continue to swell.

The news followed similarly huge slide in META Platform shares on Thursday, after the Facebook parent reported late Wednesday costly metaverse bets and the impact of soaring inflation on ad spending, which spooked investors. But Apple earnings on Thursday were a bright spot, with higher than expected revenue leaving its shares only slightly lower.

Amazon’s net sales were $127.1 billion in the third quarter ended September 30, lower than analysts’ expectations of $127.46 billion, according to IBES data from Refinitiv.