Amazon shares plunged 8 percent on Monday and were headed for their steepest two-day tumble in seven years, as investors continued to flee the stock following Thursday’s disappointing earnings report.
Amazon reported third-quarter revenue last week that trailed analysts’ estimates and also provided a fourth-quarter outlook that was below expectations. The stock dragged down the Nasdaq, which fell over 2 percent on Monday. Netflix, which like Amazon has been a favored stock for tech investors in recent years, is in the midst of a hefty two-day drop, down 11 percent.
Monday was a tumultuous day for tech stocks broadly as markets opened to the news that IBM agreed to buy cloud software distributorRed Hat for $ 34 billion, a 63 percent premium. Red Hat surged on the news, while IBM was down 3 percent.
WATCH: Amazon’s revenue growth decline is a transition to modest growth, UBS says