Apple's warning about poor holiday sales is dragging down the rest of the tech industry, from Amazon to Intel
- Apple said on Wednesday that its holiday quarter revenue would be 7% lower than expected due to weakening iPhone sales, primarily in China.
- Since the announcement, Apple's stock has dropped over 7% in after-hours trading.
- The news of Apple missing its mark appears to be impacting other tech stocks, with Amazon, Intel, Alphabet, and others all taking hits in after-hours trading.
Apple's surprise pre-announcement on Wednesday, warning investors that quarterly revenue will come in at least $5 billion below expectations, sent shockwaves across the business and investing world.
Apple's stock quickly fell 7% in after hours trading. And it appears to have dragged down many of its tech peers with it.
Here's how some top tech stocks are performing after-hours on Wednesday:
- Amazon (AMZN) down 3%
- Facebook (FB) down 1.5%
- Alphabet (GOOG) down nearly 1%
- Intel (INTC) down 2%
- Advanced Micro Devices down nearly 3%
- NVIDIA down nearly 2.5%
- Qualcomm down 2%
- Alibaba down 1.7%
Apple blamed slowing demand for iPhones in China for a good deal of its woes, which may be spooking investors in other companies with businesses that are tied to China.
But even companies without obvious China exposure, such as Facebook which is banned in China, took a dip in after hours trading. It's a reflection of Apple's importance and status in the tech industry. A slowdown in Apple's business is a bad sign for the tech business and perhaps even for the broader economic outlook.