Amazon and Intel shares tumbled on Friday after their latest earnings reports raised fresh concerns about the cost of technology investments and whether companies can deliver the returns investors expect.
Amazon fell about 3%, pairing earlier losses, while Intel plunged more 25%, putting additional pressure on technology stocks after a difficult week for some of the industry’s biggest names. The Nasdaq Composite is declining more than 2% at 9:42 a.m. ET. Shares of chipmakers Nvidia, Micron and Arm also moved lower.
For Amazon, the concern was not a lack of growth. The company reported record operating profitability and strong demand for its cloud services, but its spending on artificial intelligence infrastructure is consuming large amounts of cash.
Amazon maintained its forecast for approximately $220 billion in cash capital expenditures this year, even as free cash flow turned sharply negative.
The company’s third-quarter earnings…
