Susana SchwartzInvestors close week with sharp reaction to Wall Street downgrades
Today’s selloff of AI and tech stocks was triggered by earnings reports and guidance from Amazon, Alphabet and Intel. The Nasdaq Composite tumbled 2.9% amid a broader tech selloff amid intensifying investor scrutiny – something we touched on yesterday in “Is Wall St. saying ‘show me the money?‘”
Today, Intel suffered its worst trading day since 1974 with weak Q4 revenue guidance ($15B–$16B vs. $17B expected), and Alphabet’s12.6% drop on Thursday continued today with a 1.40% slide. The company’s cumulative losses over 30 days was approximately18%.
While the top-line market reaction seemed harsh, Alphabet’s underlying financial performance reflects very strong core growth and massive long-term value. The same is true of Intel, whose core server business surpassed Wall Street estimates.
Last but not least, by end of day, Amazon’s clawed back most of its initial 6% plunge today, which was also precipitated by panic about its massive AI infrastructure spending.
Susana Schwartz
Technology Editor
RCRTech
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