Despite a sharp fall in US technology stocks in Thursday's deal following the record plunge in Facebook-parent Meta's stock price, the tech stocks recovered sharply in extended trading hours.
On Thursday, the stock price of Meta fell 26.4 percent wiping out over $200 billion from the firm's market capitalisation and $29 billion from CEO Mark Zuckerberg's net worth. This has been the biggest one-day loss in the history of any US firm.
The plunge comes after the social media giant issued a dismal forecast, blaming Apple Inc’s privacy changes and increased competition, Reuters reported. A weak revenue outlook and decline in daily users for the first time for Facebook also led to a decline in the entire sector in Thursday's session.
The tech-focused NASDAQ also lost 3.7 percent, its biggest loss since September 2020 while the S&P500 index fell 2.4 percent in Thursday's trade.
However, while Thursday's session was bleak for other tech stocks like Snap, Amazon, Pinterest, etc. These shares witnessed a sharp recovery in after-hours or extended trading.
Snap shares surged 59 percent in extended trading after losing over 23 percent in Thursday's session. The recovery comes on the back od strong December quarter earnings. The firm posted a net income of $22.6 million compared with a loss of $113.1 million a year ago. Its sales improved 42 percent to $1.3 billion, beating Street estimates of $1.2 billion. However, it posted $4 billion in sales in 2021.
Meanwhile, Amazon also rose 16 percent in extended trading on robust December quarter earnings after closing around 8 percent lower in Thursday's session.
Pinterest was also up 21 percent in extended trading after closing 10 percent lower in Thursday's session.