Amazon falls 7%, Intel plunges 25% in premarket trading, as pressure mounts after earnings
Investors are nervous about the massive AI spending from the tech giants and whether that will pay off.
Amazon and Intel shares were down in premarket trading on Friday after they reported September quarter numbers that disappointed investors, dragging Nasdaq futures down 2% and capping off a week of rough tech earnings.
Amazon shares were down 7% in premarket trading, while Intel was down 25%.
Amazon reported a third-quarter miss on the top and bottom line while maintaining its capital expenditure forecast for 2026 of $220 billion this year. Amazon also reported negative free cash flow for the second consecutive quarter, much larger than the previous period.
Investors are nervous about the massive AI spending from the tech giants and whether that will pay off.
On Thursday, Alphabet shares closed 13% lower, its worst single-day drop in history after it too reported ballooning negative free cash flow .
Microsoft shares rose after it remained cash flow positive in the September quarter .
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- CNBC30 Oct, 10:16
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