The Nasdaq plunged almost 3% Friday as Amazon, Intel and Reddit became the latest stocks to be hit by mounting concerns about AI – leaving the tech-heavy index with a 5% monthly decline.
Tech and AI stocks have suffered choppy trading sessions for weeks as investors bounce between fears of an “AI bubble” and optimism around the new tech. But concerns have grown during the third-quarter earnings season, as companies reveal disappointing revenue and huge spending.
Amazon fell 1.4% Friday after the e-commerce giant reported revenue of $201.9 billion and net income of $20.7 billion – both of which missed Wall Street estimates – and negative free cash flow of $42.4 billion.
The company saw its highest revenue growth in Amazon Web Services, its cloud division, in years, reporting a 39% rise to $46 billion….
