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.
The stock dropped $132.72 to $1,510.00, after losing $139.36, or 7.8 percent, on Friday, and is trading at its lowest price since April. The 15-percent drop over two days is the biggest since late October 2011, when the shares plummeted 17 percent. Overall, shares have lost more than 25 percent since peaking on Sept. 24.
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
