Apple, Amazon poised for US$180B loss of value after holiday warnings
BNN Bloomberg
Apple Inc. and Amazon.com Inc. shares are set to shed more than $180 billion in combined market value after the technology giants served notice of a difficult holiday season and reported disappointing earnings.
Apple Inc. and Amazon.com Inc. shares are set to shed more than US$180 billion in combined market value after the technology giants served notice of a difficult holiday season and reported disappointing earnings.
Apple fell as much as 3.8 per cent in U.S. premarket trading after Chief Executive Officer Tim Cook said supply constraints were affecting most of its products. Amazon dropped nearly 5 per cent after warning that high costs could wipe out any profit in its most important quarter of the year.
Still, most analysts backed their buy calls, saying the issues are transitory. “Even Goliath feels the pain,” Evercore ISI’s Amit Daryanani said of Apple’s warning on chip shortages, while maintaining his outperform rating.
The news from the technology heavyweights overshadowed what had been a strong earnings period for the sector. Earlier this week, Alphabet Inc. and Microsoft Corp. both rose more than 4 per cent after results beat expectations.
Apple’s drop in premarket trading puts Microsoft on pace to become the world’s largest listed company by market capitalization.
