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The so-called FANG shares and other tech stocks plunged Thursday into prolonged trading following disappointing quarterly reports released by Amazon.com Inc. and Alphabet Inc. The weak results of Amazon and Google's parent, Alphabet, have been the latest setback for the fast-growing quartet known as FANG, which also includes Facebook Inc. and Netflix Inc.
Nasdaq futures fell by 0.8% and S & P futures by 0.5%, suggesting that the US stock market could sell more at the opening on Friday. Wall Street favorites in recent years, FANG shares were punished in a month of volatility for US stocks, which worried some investors that a ten-year bull market could end.
The FANG group, as well as high-tech companies like Apple and Microsoft, have made significant contributions to the S & P 500's gains in recent years, and a prolonged decline in these stocks would be a major setback for the market.
After the bell, Amazon lost 8%. The drop came after the heavyweight of online retailers and cloud computing announced that its quarterly net sales had reached $ 56.58 billion, up from $ 43.74 billion a year ago. According to estimates by Refinitiv, analysts missed $ 57.1 billion.
Alphabet missed analysts' estimates for third-quarter revenue, while higher spending reduced its operating margin for the third consecutive quarter, dispelling concerns over a regulatory review. Its stock dropped by 4.7%.
After normal working hours, Netflix lost 3% and Facebook, which released its results on October 30, lost 2.3%.
During the official trading session on Thursday, the four FANG shares rose from 3% to 7%, taking back some of the territory lost in recent weeks during a massive sale. The Nasdaq jumped 2.95%, but remained down 10% from the record reached in August.
Apple fell 1.6% after normal hours, while Twitter dropped 2.5%. Earlier in the day, Twitter recorded a 15% gain in its largest gain in a day in a year since the social media company easily beat Wall Street's earnings and earnings estimates.
Snap dropped 11% in extended trading after Snapchat's owner said its number of daily active users had fallen from $ 188 million in the third quarter to $ 186 million in the third quarter, mainly due to a redesign of Facebook's application and competition of Instagram.
Micron Technology chip maker lost 3.8% of its expanded trade after Western Digital said it was taking action to align its flash chip production with the expected weak demand. Western Digital dropped 8% in the extended trade.
Intel Corp jumped 3.5% in extended trading after posting one of Thursday's rare optimistic quarterly reports.
First publication: Oct. 26, 2018 08:10 IST
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