AMAZON THIRD-QUARTER EARNINGS
Amazons stock price dropped in after-hours trading following a disappointing third-quarter earnings release. The e-commerce company reported earnings per share of $6.12 versus an expected $8.92. Revenue also came in under expectations at $110.81 billion. That was Slightly less than the $111.6 billion Wall Street expected.
Traders sold the stock on the disappointing numbers, as well as less than rosy fourth-quarter guidance. Amazon stock traded as low as 4% shortly following the earnings data. The downbeat Q4 guidance is a result of higher forecasted labor costs, supply chain issues, and higher shipping costs. The headwinds are a result of Covid-induced issues as global supply struggles to keep up with demand. One bright spot is a 39% year-over-year increase in Amazon Web services revenue. That follows a 37% y/y gain in the prior quarter.
AMAZON 5-MINUTE CHART
APPLE FOURTH-QUARTER EARNINGS
Apple reported its fourth-quarter figures shortly after Amazon, but the iPhone company also reported lackluster numbers. Q4 earnings per share crossed the wires at $1.24, which was in line with Wall Street expectations. However, revenue missed the expected $84.69 billion mark at $83.36 billion. The stock traded down by nearly 5% in after-hours trading.
However, sales from the new iPhone 13 started just days before Apple‘s quarter-end cutoff. Investors will be keen to hear any commentary during the company’s conference call, where executives are likely to be pressed over supply chain issues. Apple hasnt offered guidance since the pandemic started, which leaves analysts to come up with their own predictions.
APPLE 5-MINUTE CHART
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