Amazon shares collapsed more than 20% on Thursday after the company gave a “horror show” revenue forecast for the holiday season.
The e-commerce giant’s shares were trading down 20.6% at $88.24 in after-market trading on Thursday.
Amazon’s plummeting share price wiped more than $200 billion off the company’s market capitalization, which fell below the trillion-dollar mark for the first time since 2020.
The nosedive came after Amazon forecast net sales of between $140 billion and $148 billion for the fourth quarter of 2022, a period which includes the sales-heavy holiday season. Analysts were expecting $155.15 billion, according to Refinitiv.
Wedbush Securities managing director Dan Ives told The Post that Amazon’s earnings report was a “horror show in terms of guidance.”
“The company is seeing massive headwinds,” Ives said. “The clock struck midnight for Amazon and the Street will punish the stock.”
In the July through September quarter, Amazon’s net sales were $127.1 billion — slightly lower than analysts’ expectations of $127.46 billion, according to Refinitiv data. Net income fell to $2.9 billion from $3.2 billion a year earlier.
The brutal sell-off comes just one day after Facebook and Instagram parent Meta reported its second quarter of falling revenue, sending its shares tanking 19%.
“This continues the train wreck of tech earnings,” Ives said.
Amazon’s tough projections can be attributed in part to decades-high inflation and intense competition from rivals such as Walmart.
Parts of the Seattle-based company’s highly profitable cloud computing division, Amazon Web Services, have recently frozen hiring, The Post exclusively reported on Monday.
With Post wires
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