Amazon and Intel Shares Plunge in Pre-Market After Earnings

Shares of Amazon and Intel are trading sharply lower in pre-market action this Friday. Amazon stock is down 7% while Intel has tumbled 25% following quarterly results that missed investor expectations.

Amazon disappointed the market by reporting revenue and profit figures that fell short of estimates. The company maintained its capital expenditure forecast at 220 billion dollars for the year and posted negative free cash flow for the second consecutive quarter.

Intel faces an even tougher situation due to weaker-than-expected guidance. The company attributed its performance to persistent weakness in the personal computer market. The semiconductor sector is feeling the impact with widespread declines for firms like Nvidia and ASML.

Investors are growing concerned about the massive amount of capital flowing into artificial intelligence. They are questioning whether these high costs will deliver the expected financial returns over the long term. Nasdaq-100 futures are down 2% as tech companies face heavy selling pressure.

Analysts note that positioning in the tech sector remains highly concentrated. While company fundamentals are considered solid, the current environment is fueling stock price volatility and caution among global market participants.