Amazon's Miss Threatens to Weigh on Stocks, Though Apple's May Not

(Bloomberg) -- Data from the past 20 years shows that when Amazon.com Inc.’s quarterly earnings miss estimates, the stock more often than not falls over the next month. The same isn’t true for Apple Inc.

That may offer some relief for investors concerned about both of the tech heavy-hitters having releasing disappointing results after the bell on Thursday. Amazon’s earnings per share and revenue trailed estimates; Apple’s revenue fell short too, but its EPS matched. Both stocks, which together account for about 10% of the market value of the S&P 500, are sliding in Friday morning trading, with Amazon down the most since July and Apple the most since March. 

Amazon’s EPS has missed on 39 occasions over the past two decades, shedding a mean 2.3% over the following month. Apple, on the other hand, has missed in just 13 quarters, with the stock gaining most of the time, rallying a mean 3.9%. The chart shows Amazon’s misses over the past 20 years:

This was a post on Bloomberg’s Markets Live blog. The observations are those of the blogger and not intended as investment advice. For more markets analysis, go to MLIV.

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