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- November 1, 202614°
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- November 1, 202614°
Intel shares plunge over 20%, while Amazon stock falls more than 6%
Intel shares fell more than 20% after a weak forecast amid a downturn in the PC market, while Amazon stock dropped more than 6% following a disappointing report and massive AI investments.
Intel shares fell more than 20% in extended trading on Thursday after the chipmaker issued a weak fourth-quarter forecast, citing the continuing downturn in the global PC market. Amazon stock dropped more than 6% after a disappointing quarterly report, CNBC reports.
Intel expects revenue of $15 billion to $16 billion and adjusted earnings of 25 cents per share in the current quarter, while analysts had expected $17.1 billion and 43 cents. “We see the PC market downturn continuing at least through the first half of next year,” the company’s chief financial officer, David Zinsner, said.
The forecast was also affected by an explosion at Intel’s plant in Israel earlier this month that killed two workers. Zinsner said the incident would cost the company approximately $600 million in lost revenue over two quarters. Before the report was released, Intel shares had risen about 150% since the beginning of the year.
Amazon recorded negative free cash flow of $42.4 billion over the past 12 months due to a sharp increase in investments in artificial intelligence. Capital expenditures reached $77.3 billion in the quarter, compared with $35.1 billion a year earlier, while its fourth-quarter revenue forecast of $240 billion to $247 billion came in below market expectations.
Meanwhile, revenue at its AWS cloud division rose 39% to $45.98 billion. Amazon CEO Andy Jassy said AWS could become a business with $1 trillion in revenue over the next five to 10 years.
The previous day, Alphabet shares fell about 10% amid slowing growth in its search business. According to The Wall Street Journal, the company lost about half a trillion dollars in market value, marking the worst day in its history.
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