Tech stocks battered after disappointing Amazon and Alphabet results


SAN FRANCISCO (Reuters) – FANG shares and other technology stocks were down on Thursday after disappointing quarterly reports from Amazon.com Inc (AMZN.O) and Alphabet Inc (GOOGL.O).

The weak results from Amazon and the Google parent company Alphabet were the latest setback for the high-growth quartet of shares known as FANG, which also includes Facebook Inc. (FB.O) and Netflix Inc. (NFLX.O).

Nasdaq futures NQcv1 fell 0.8 percent and S & P EScv1 futures 0.5 percent, suggesting that the US stock market will sell more on Friday.

Wall Street favorites in recent years, the FANG shares were punished in a month of volatility for US stocks, which worried some investors that a decade-old bull market could end.

The FANG group, along with heavyweight tech stocks Apple and Microsoft (MSFT.O), have made above-average contributions to the profits of the S & P 500 in recent years, and a prolonged decline in these stocks would be a major setback for the market.

After the bell Amazon appeared 8 percent. The decline came after the online retailer and cloud computing heavyweight reported that quarterly net sales had increased from $ 43.74 billion a year ago to $ 56.58 billion. According to Refinitiv data, analyst estimates are $ 57.1 billion.

Alphabet missed analyst estimates for third-quarter revenue, while rising spending narrowed operating margin for the third quarter in a row. His share fell 4.7 percent.

Netflix responded after hours and lost 3 percent and Facebook, which reports results on October 30, lost 2.3 percent.

During the official trading session on Thursday, all four FANG shares rallied between 3 percent and 7 percent, gaining some of the territory lost in recent weeks during a broad market sell-off. The Nasdaq .IXIC jumped 2.95 percent, but fell 10 percent from its record high in August.

Apple (AAPL.O) fell 1.6 percent after hours, while Twitter (TWTR.N) fell by 2.5 percent. Earlier in the day, Twitter rose 15 percent in its biggest one-day gain after the social media company slightly outperformed Wall Street's revenue and earnings estimates.

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Latching (SNAP.N) Broken 11 percent in extended trading after the Snapchat owner said the number of daily active users dropped to 186 million in the third quarter from 188 million in the June quarter, mainly hurt by an app redesign and competition from Facebook Instagram.

Chipmaker Micron Technology (MU.O) lost 3.8% in extended trading to Western Digital (WDC.O) said it is taking steps to align its output of flash memory chips with the projected weak demand. Western Digital lost 8 percent in advanced trading.

Intel Corp. (INTC.O) rose by 3.5 percent after one of the few positive quarterly reports from Thursday.

Reporting by Noel Randewich in San Francisco; Cut by Matthew Lewis and Tom Brown

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