Meta? Didn’t it just spike? Friday is going to be interesting.
By Wolf Richter for WOLF STREET.
A bunch of the biggest tech companies reported earnings after the market closed today, and their shares tanked, and Friday is going to be interesting, after today’s short-covering action.
Amazon [AMZN] shares plunged as much as 11% afterhours and currently trade down 9%, at $2,631, down 30% from their 52-week high, and back where they’d first been in June 2020.
This debacle is occurring despite the huge bout of financial engineering in early March to stem the slide of its shares at the time: Its announcement of a most-splendid but useless 20-for-1 stock split and an even more splendid share buyback program that it wants to fund with an enormous amount of borrowed cash. But the bloom has come off the rose, even tried-and-true financial engineering doesn’t do the trick anymore, and shares just let go (data via YCharts):