Amazon and Alphabet erased a combined $91 billion in market capitalization Friday as investors punished the popular technology companies after they fell short of Wall Street’s revenue expectations in the third quarter.
Jeff Bezos’ mammoth e-commerce company plunged 7 percent on the week’s final day of trading, losing roughly $69 billion. The company was on pace for its worst day since January 2016. Bezos himself lost $10 billion in equity value Friday.
Google-parent Alphabet, down 2.7 percent, lost about $22 billion.
Both companies reported third-quarter financial results Thursday evening that underwhelmed investors. While both giants reported profits that exceed expectations, Alphabet and Amazon both missed analyst estimates on top-line revenue growth.
Alphabet reported earnings per share of $13.06 on revenue of $33.7 billion, while Amazon posted EPS of $5.75 and generated $56.6 billion in sales.
The latest glimpse into the financial health of two of the globe’s largest companies has renewed a sell-off in the so-called “FANG” stocks, the unofficial name of the group of stocks Facebook, Amazon, Netflix, and Google.
Now synonymous with big technology as a whole, the collective barring Amazon has underperformed the broader market over the past three months.
Facebook, Alphabet, and Netflix have all lost roughly 14 percent since late July, while the S&P 500 has shed 4.6 percent. Amazon has lost 1.4 percent since then. Friday’s price movement pushes Amazon further away from a $1 trillion market cap, a feat it briefly achieved on Sept. 4. That milestone has only been clinched by one other publicly traded American company: Apple.
The movement also catapulted longtime tech titan Microsoft back ahead of Amazon in terms of size. Amazon surpassed the software company in early 2018.