Amazon and Alphabet fell victim to Wall Street’s growth jitters

Amazon and Alphabet fell victim yesterday to Wall Street’s growth jitters, allowing Microsoft to vault over the two rivals to become the world’s second-most valuable company, after Apple. The shake-up was just the latest result of Wall Street tumult that has left some investors unwinding the big bets they made on tech earlier this year. Amid broader nervousness about geopolitical tensions and rising interest rates, Wall Street was merciless in punishing Amazon, Google parent Alphabet and Snap after Thursday’s earnings reports that beat expectations in some areas while disappointing in others… Even Wall Street analysts who remain bullish on Silicon Valley companies fundamentals warned that investors were heading for the exits… Amazon, which less than two months ago had briefly achieved a trillion-dollar valuation, is now worth almost $200 billion less, as investors readjust to a different growth profile… But not every tech company has fallen victim to the concerns hitting Amazon and Alphabet. Microsoft reported strong results from its PC business and the shift to cloud computing. Intel reported robust sales and upgraded forecasts for the holiday quarter. The next big confidence test will come with Apple’s results next week.

Tim Bradshaw