The British Financial Times reported that major US technology companies lost nearly a trillion dollars in their market value this week before a partial recovery, as growth stalled due to the global economic slowdown and mounting cost pressures.
The stock market losses accelerated late Thursday after Amazon shocked Wall Street with a weak forecast for revenue in the all-important fourth quarter, as holiday shopping usually boosts the e-commerce giant’s revenue. Amazon indicated that its revenues in that period are expected to be $ 15 billion less than analysts’ expectations, which it set at $ 155 billion.
This was an extension of a weak earnings season for US digital groups, ending the growth spurt it experienced during the Corona epidemic, and hopes that it would withstand the inflation and weak growth hitting the broader economy.
Amazon and Microsoft said growth in their cloud computing business is slowing more than expected as customers look to limit their spending. This has raised concerns that some of the companies believed to be the most resilient to slowdown, including computational computing and Google search ads, are beginning to suffer.
Amazon’s pessimistic forecast added to the pain for the e-commerce sector, and the reaction to the news of its earnings led to a decline in the market value of the five largest technology companies, Alphabet (the owner of Google), Apple, MYAT, Microsoft and Apple, by $ 950 billion compared to what it was at the start of the revenue season.
Only Apple could bear this frustration and recorded revenues and profits that exceeded local expectations, which led to a partial recovery late Thursday, which made the total loss in the market value of the five companies $ 770 billion, bringing their combined value to $ 6.43 trillion.