Amazon’s gains come after the stock had its worst day since March 2020.
Amazon.com Inc. gives back to the market what Meta Platforms Inc. just took away — or at least some of it.
The e-commerce giant is poised to add nearly $200 billion in market value if its 14% share gain in after-hours trading holds out after the company’s fourth-quarter earnings report through Friday’s end. That would be the biggest one-day gain in U.S. stock market history, just a day after Facebook parent Meta Platforms Inc. entered the other end of the record book with a $251 billion destruction.
The rise in Amazon’s stock price came after sales in its cloud computing business exceeded Wall Street estimates and the company increased the price of Amazon Prime subscriptions, allaying some concerns about the impact of cost increases on profitability. Those elements overshadowed current quarter revenue and operating profit forecasts that fell short of expectations.
Amazon’s gains come after the stock experienced its worst day since March 2020, when Meta’s earnings flop fueled fears about Big Tech’s financial results. The 7.8% drop during Thursday’s regular session destroyed $119 billion in market value for the Seattle-based company.
Apple Inc. set the current record for added market value last week after winning about $179 billion the day after the earnings report.
A $200 billion profit for Amazon would exceed the market value of more than 90% of the companies in the S&P 500 Index, according to data collected by Bloomberg.
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