Amazon, Alphabet, Twitter tumble as Barclays warns of choppy earnings season ahead

Amazon, Alphabet, Twitter tumble as Barclays warns of choppy earnings season ahead

The selloff coincides with a warning from Barclays of a choppy earnings season for internet companies in the third quarter. News Hub Live- HIDE PLAYER Your browser does not support HTML5 video. 0:00 / 0:00 Skip Ad in 15 Your browser does not support the audio tag. Click For Sound Among the factors the companies cited were a less favorable foreign-exchange climate, regulatory changes in Europe, the World Cup and unrealistic analyst growth targets. SNAP, -5.29% are expected to be “washed out.” As of early afternoon Wednesday, Facebook was off 1.4% and Spotify had shed 6.5%, while Alphabet fell 1.6%, Amazon dropped 3.1%, Twitter skidded 6.1%, Snap declined 3.6% and eBay lost 2.9%, while the S&P 500 SPX, -2.55% retreated 1.5% and the Nasdaq COMP, -3.14% slid 1.9%. Still, Sandler stressed that such moves are not too exceptional. “Stepping back, these corrections are normal, have happened regularly over the past decade, and will ultimately lead to the next leg higher, so we remain very constructive [over a] longer term,” he said. Providing critical information for the U.S. trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.

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Internet companies are expected to report mixed earnings in the third quarter.

Amazon.com Inc., Alphabet Inc. and Twitter Inc. slumped Wednesday in a technology-sector rout that put the Nasdaq Composite on track for its worst day since February.

The selloff coincides with a warning from Barclays of a choppy earnings season for internet companies in the third quarter.

Ross Sandler, senior internet analyst at Barclays, noted that many internet companies missed their second-quarter revenue targets for the first time since the financial crisis and subsequently cut their revenue forecasts for the third quarter.

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Among the factors the companies cited were a less favorable foreign-exchange climate, regulatory changes in Europe, the World Cup and unrealistic analyst growth targets.

“Shares seem to have started to reflect this more challenging backdrop just in the past few…

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