Amazon and Alphabet were set to erase a combined $121 billion in market capitalization Friday as investors punished the popular technology companies after both fell short of Wall Street’s revenue expectations in the third quarter.
Jeff Bezos’ mammoth e-commerce company plunged 9 percent in premarket trading on the week’s final day of trading, set to lose roughly $78 billion. Google-parent Alphabet, down 5 percent before the bell, was poised to shed about $42 billion.
Both companies reported third-quarter financial results Thursday evening that underwhelmed investors. While both giants reported profits that exceed expectations, Alphabet and Amazon both missed analyst estimates on top-line revenue growth.
The latest glimpse into the financial health of two of the globe’s largest companies has renewed a sell-off in the so-called “FANG” stocks, the unofficial name of the group of stocks Facebook, Amazon, Netflix and Google. Now synonymous with big technology as a whole, the collective barring Amazon has underperformed the broader market over the past three months.