Friday Hasn’t Even Started Yet, But It’s Already Ugly
The FANGMAN stocks went to heck afterhours.
Just a note to show how decrepit and ephemeral the enthusiasm for stocks is.
So far in October, the S&P 500 has booked 13 losing days, including October 10, when the index dropped 3.3%, and October 24, when it dropped 3.1%. Then came today, with the feel-good moment of a boisterous 1.9% gain. And then came after-hours trading, and nearly everything went to heck, particularly the FANGMAN stocks that weigh so heavily on the index with their $4-trillion market cap. And Friday morning looks already ugly. All of the FANGMAN stocks were in the red in late trading:
- Facebook [FB]: -2.3%
- Amazon [AMZN]: -7.4%
- Netflix [NFLX]: -2.8%
- Google’s parent Alphabet [GOOG]: -3.7%
- Microsoft [MSFT]: -1.5%
- Apple [AAPL]: -0.4%
- NVIDIA [NVDA]: -2.8%
There were some standout reasons:
Amazon plunged after it reported record profit but missed on revenues and guided down Q4 expectations for sales and profits, a sign of slowing revenue growth. It was down as much as $150 a share, or almost 9%.
Google’s parent Alphabet reported that revenues grew 22%, which missed expectations. Earnings beat, but a considerable slice – $1.38 billion! – of those earnings came from the gains in its portfolio of equity securities. CFO Ruth Porat warned that traffic acquisition costs would increase further as consumers are shifting search activity from desktop computers to mobile devices. Shares plunged up to 5%.
Intel [INTC] reported earnings that beat expectations, and shares initially jumped, but during the earnings call, things got muddled fast, and shares gave up their gains.
Advanced Micro Devices [AMD], an Intel competitor, had plunged 15% during the day despite the big rally in tech shares, after reporting results and discussing a graphics-chip glut resulting from the collapse of the crypto-mining business. It lost another 3% after hours.
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