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Amazon and intel Stocks fell in premarket trading Friday after the company released September quarter numbers that disappointed investors, sending Nasdaq futures down 2% and capping a rough week for tech companies.
Amazon shares fell 7% in premarket trading, while Intel fell 25%.
Earlier this year, Amazon maintained its 2026 capital spending forecast at $220 billion, but reported third-quarter sales and bottom line misses. Amazon also reported negative free cash flow for the second straight quarter, significantly higher than in the previous quarter.
Intel announced weaker-than-expected guidance, citing the continued weakness in the PC market.
Including chip stock micron, Nvidia and arm Although pre-market trading in the US was weak, major European semiconductor manufacturers ASMLa significant decrease was observed.
NASDAQ Composite Index for the past 5 days.
Tough week for tech company profits
Investors are nervous about tech giants’ massive AI investments and whether they will pay off.
On Thursday, alphabet The stock also closed 13% lower, its worst one-day drop on record after the company reported negative free cash flow.
microsoft The stock price rose after the company maintained positive cash flow in the September quarter.
The pressure on tech stocks continues, with Nasdaq 100 futures down 2% in early trading, potentially pushing tech into negative territory this week. Despite the recent decline, the Nasdaq Composite Index is up more than 12% year-to-date as of Thursday’s close.
“I don’t think this is a moment of liquidation, but I think it’s time for investors to take a hard look at how, despite strong fundamentals, overall market positioning remains crowded,” Matt Orton, chief market strategist at Raymond James, told CNBC’s “Squawk Box Europe” on Friday.
“As painful as this moment may be, the fact is that the fundamentals remain largely intact, especially across the AI capex beneficiary portion of the market.”
Orton said negative free cash flow for these companies is “generally OK” because it’s “temporary.”
