{"id":44918,"date":"2021-07-30T08:00:00","date_gmt":"2021-07-30T13:00:00","guid":{"rendered":"https:\/\/www.tradestation.io\/insights\/?p=44918"},"modified":"2021-07-30T09:04:32","modified_gmt":"2021-07-30T14:04:32","slug":"peak-earnings-amazon-facebook","status":"publish","type":"post","link":"https:\/\/www.tradestation.com\/insights\/2021\/07\/30\/peak-earnings-amazon-facebook\/","title":{"rendered":"Peak Earnings? Amazon.com, Facebook Make Tech Investors Worry It’s Downhill From Here"},"content":{"rendered":"\n
Major technology stocks like Amazon.com got a huge boost from last year’s pandemic. Now investors are starting to worry their best growth is in the rearview mirror.<\/p>\n\n\n\n
Amazon.com’s (AMZN) second-quarter revenue was just $113.1 billion, $2 billion less than analyst forecast. It was the first time AMZN missed consensus in at least five quarters. Guidance for the next period was even worse, about 9 percent below the current Wall Street estimate.<\/p>\n\n\n\n
Facebook (FB) did okay with its backward-looking numbers. But it issued a similar warning about the future:<\/p>\n\n\n\n
“In the third and fourth quarters of 2021, we expect year-over-year total revenue growth rates to decelerate significantly,” CFO David Wehner said in the statement Wednesday afternoon.<\/p>\n\n\n\n
The results could actually be worse because both companies’ core businesses showed signs of weakening. AMZN’s operating income missed estimates as fulfilment expenses rose more than expected. Margins<\/a> at its AWS web-hosting also missed. FB had two issues:<\/p>\n\n\n\n