Tech companies on the Nasdaq-100 took a hit after hours Wednesday following Facebook’s unprecedented plunge of more than 20 percent as it fell short of analysts’ estimates for monthly active users and reported lower-than-expected quarterly revenue, CNBC reports.
Facebook fell to $171.12 a share after the bell as investors reacted to news that monthly active users rose to 2.23 billion, falling short of a consensus estimate of 2.25 billion from Reuters. Apple lost about 1 percent, Amazon 1.5 percent, Netflix about 2 percent and Google-parent Alphabet 1.5 percent.
Netflix shares have fallen 9.4 percent since the company reported earnings on July 16.
The Invesco QQQ Trust ETF, which tracks the performance of the Nasdaq-100 index and offers traders a good idea of how the Nasdaq stocks will trade, fell sharply in after-hours action Wednesday, sliding $3.97, or 2.17 percent.
"The Facebook guidance debacle will be a tough pill to swallow for the bulls and weigh on FANG names as this comes on the heels of a Netflix miss as well last week," Daniel Ives, head of technology research at GBH Insights, told CNBC. "Facebook’s outlook will cause worries on the Street and that could spread to other names with stock multiples coming under attack. Facebook’s nightmare guidance will spook tech investors with a near term white knuckle period ahead."
Amazon reports second-quarter earnings after the markets close on Thursday, and analysts expect the company to report $53.4 billion in earnings. Company shares have risen over 55 percent this year, and full-year sales are projected to reach $237.83 billion, which would mark a nearly 34 percent growth.
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