Wall Street is poised to open lower this morning as investors seem particularly upset about last night’s disappointing quarterly results from the retailing behemoth Amazon.com Inc (NASDAQ:AMZN).
Shares in the retailing giant are down 8.88% at $1,624 in pre-market trade after Amazon’s third-quarter revenue and fourth-quarter outlook missed the Street’s expectations.
The retailer, which is usually at the top of its game, reported third-quarter sales of $56.6 billion, which fell short of the consensus estimate of $57.1 billion.
Its revenue guidance for the fourth quarter of a range of $66.5bn to $72.5 billion, also came in below analysts’ estimate of $73.79 billion.
But its quarterly report wasn’t entirely dreary. Amazon's per-share earnings soundly beat estimates, coming in at $5.75 versus the $3.14 forecast by Wall Street.
Shares of Snap Inc (NYSE:SNAP), the parent company of the social media messaging app Snapchat, were also being punished on the back of a lackluster quarterly earnings report.
Snap slipped 12% to $6.15 after the struggling social media group reported that its daily active users dropped to 186 million, down from 188 million in the previous quarter.
While that figure was in line with analysts’ projections, investors viewed the loss of 2m users as substantial.
Wall Street wasn’t expecting much from Snap this quarter and has criticized the social media app for bleeding users and buckling under fierce competition from Facebook-owned Instagram.
Snap’s net loss narrowed to $3251 million or $0.25 per share, from $443.2 million, or $0.36 per share, in the year-ago quarter. On an adjusted basis, Snap lost $0.12 per share, where analysts had been predicting a loss of $0.14 per share.
Elsewhere on the quarterly results front, the tech giant Intel Inc (NASDAQ:INTC) also failed to please investors despite reporting third-quarter earnings and full-year guidance that was better than expected.
Intel shares were flat at $44.10 in pre-market trade after posting per-share earnings of $1.40 and zipping past the consensus estimate of $1.15. Its revenue came in at $19.16 billion, up from the $18.11 billion expected by analysts.
And its projections for the full-year were also solid as Intel is now predicting earnings of $1.22 per share and $19 billion in revenue for the fourth quarter, which also outpaces Wall Street’s forecasts.
Last but never least, McDonald’s Corp (NYSE:MCD) was trading 1% lower to hit $173.43 despite its efforts to shake up its menu by bringing back the McRib sandwich.
“Slathered in tangy barbecue sauce and topped with slivered onions and pickles, all on a hoagie style bun,” the McRib, which first debuted at McDonalds in 1981, is making a comeback and will be on offer once again at 9,000 of McDonald’s nearly 14,000 locations.