Tech Stocks Slide Ahead of Apple, Amazon Earnings | Closing Bell

About this video

• Video Title: Tech Stocks Slide Ahead of Apple, Amazon Earnings | Closing Bell
• Channel: Bloomberg Television
• Speakers: Romaine Bostick, Katie Greifeld, Carol Massar, Tim Stanovec
• Duration: 00:11:26

Overview

This video provides a market update as trading nears its close, focusing on the performance of tech stocks ahead of significant earnings reports from Apple and Amazon. The hosts discuss market indices, sector performance, and specific company earnings, including Amazon's mixed results and Roku's disappointing forecast.

Key takeaways

• Market Performance: Major US indices closed lower, with the Dow down 0.2%, the S&P 500 down 1%, and the Nasdaq down 1.5%. The Dow transports sector was a bright spot, closing up 0.9%.
• Tech Sector Weakness: The tech sector experienced significant pain, with only three sectors (real estate, financials, and healthcare) showing gains.
• Amazon Earnings: Amazon reported mixed earnings. While total sales and adjusted EPS beat expectations, Amazon Web Services net sales missed estimates, and operating margins came in light. Despite this, Amazon shares rose significantly in after-hours trading, reportedly driven by an investment in Anthropic and commentary on AWS growth and expansion of delivery services.
• Roku Earnings: Roku shares fell 10% in after-hours trading after reporting full-year net revenue that met estimates but boosting their forecast. The company's shares continued to drop, down 14% post-market.
• Other Earnings: Several other companies released earnings: Atlassian beat expectations and guided higher, Coinbase reported mixed results with trading volume missing estimates, Reddit beat on daily active users and net income, and Twilio provided an optimistic outlook. Zillow's revenue and EPS beat estimates, but shares dropped in after-hours trading.