SAN FRANCISCO/NEW YORK (Reuters) - Wall St breathed a sigh of relief on Thursday after Amazon.com’s quarterly results beat estimates, sending the online retailer’s stock to a record high and alleviating fears of deepening troubles across the FANG group after Facebook’s results sent its shares reeling.
FILE PHOTO: Amazon.com's logo is seen at Amazon Japan's office building in Tokyo, Japan, August 8, 2016. REUTERS/Kim Kyung-Hoon/File Photo
A 19 percent plunge in Facebook shares rattled Amazon.com investors earlier in the day, with traders in Amazon’s options displaying heightened defensiveness ahead of its June-quarter report after the bell.
Facebook late on Wednesday warned about a margin hit as revenue growth slows and user privacy costs climb.
The social network’s dismal forecast followed a disappointing report by fellow FANG company Netflix on July 16. The so-called FANG stocks, which also include Google-owner Alphabet, have been central to Wall Street’s rally in recent years, and any serious weakness in their revenues and profit expansions could make future stock market gains more difficult.
“Even though we had a bump in the road with Facebook and Netflix, we’re not derailing the tech story,” said Synovus Trust portfolio manager Daniel Morgan after Amazon’s report. “It’s a huge sigh of relief.”
Following its upbeat report after the bell, Amazon’s stock rose 3.2 percent to a record high $1,866, more than making up for a 3 percent loss during Thursday’s trading session.
As Amazon expands into grocery retail through its acquisition of Whole Foods Market last year, and as more businesses move their IT departments onto its cloud infrastructure, its stock price has been red hot. Amazon recently traded
