mazon was on course to cash in on the biggest one-day price gain in Wall Street history today, ending a rollercoaster week for America’s tech titans and pension pots around the world. who depend on it.
The e-commerce and cloud computing giant’s futures jumped 15% overnight – adding $200 billion to its paper market value – after beating expectations for a 10% rise in sales at $137 billion in the past three months.
Revenues were boosted by its stake in electric vehicle maker Rivian, a 17% increase in the price of Prime membership and the outstanding performance of its cloud computing business.
The rebound rally helped lift other tech players. Snap futures, owner of Snapchat, rose 62%, fueled by its first-ever earnings, and Pinterest saw a 32% rise.
It comes just a day after Facebook owner Meta suffered the biggest one-day wipeout in history: a 26.4% crash that erased $230 billion from its value.
Founder Mark Zuckerberg owns 12.8% of the shares. His paper fortune has taken a nearly $30 billion hit as investors worry his social network will lose ad revenue and looks to rivals like SnapChat and TikTok.
These are movements that make the eyes water and make the stomach turn
The “shattering” moves in US stocks have led to wild swings in global markets.
In London, the value of tech-play stocks soared: shares of BT, Vodafone, Avast and Airtel Africa gained a combined value of £1.3 billion.
Technology investment funds such as Edinburgh Worldwide Investment Trust have joined the party.
Apple set the current record for market value added last week after earning around $179 billion the day after its earnings report.
The wild swings have implications beyond the US, with many UK pension funds invested in tech stocks.
The UK Workplace Pension Scheme invests just over 1% of contributions in Meta.
Many ordinary investors also have exposure through funds such as Baillie Gifford’s Scottish Mortgage Investment Trust and his USA Growth Trust.
Michael Hewson of CMC Markets said: “These are stomach-churning moves that are normally associated with penny stocks, and yet they happen in companies with billion-dollar market caps, such is the fragile nature of feeling.”
Willem Sels, of HSBC Global Private Banking, said: “Equities are in a tug of war between Fed policy tightening and earnings prospects – and nowhere is this more the case than in technology. .”