Tech stocks take a beating after hours on disappointing earnings reports

Key Points
  • Box tanked 24 percent after falling short of estimates.
  • HP, Square, Fitbit and Booking also tanked.
  • Earlier in the day, Fed Chairman Jay Powell pointed to worsening financial conditions.
Aaron Levie, CEO, Box
Scott Mlyn | CNBC

Wednesday was a bad day to report tech earnings.

HP, Box, Square and Booking all plummeted in extended trading after providing quarterly numbers or forecasts that disappointed investors. Box led the declines, dropping as much as 24 percent on weaker-than-expected guidance. Fitbit was down 13 percent as it gave a dim forecast for earnings and revenue.

The declines came after the Dow Jones Industrial Average and S&P 500 both closed regular trading in the red. Earlier on Wednesday, Fed Chairman Jay Powell said during his testimony on Capitol Hill that "financial conditions are now less supportive of growth than they were earlier last year."

HP stock declined as much as 13 percent. Its revenue was up 1.3 percent year over year, the lowest growth rate in two years.

"As the macro uncertainty has increased we have seen further price sensitivity among customers pressuring both our share and our supplies pricing," HP CEO Dion Weisler told analysts on the company's conference call. "We're taking actions to lower the level of supplies inventory in the market to be consistent with our new share assumptions."

Square shares moved downward by as much as 7 percent after it projected lower-than-expected guidance.

Software company Alteryx dropped more than 5 percent, and Booking, the parent of Priceline and Kayak, slumped 10 percent. Booking reported $3.21 billion in revenue in its January quarter, just below the $3.22 billion Refinitiv consensus.

Elastic, an open-source software company that went public last year, fell 8 percent even after surpassing estimates for the last quarter and providing optimistic guidance.

WATCH: Box CEO: We're seeing our business become more seasonal

Box CEO: We're seeing our business become more seasonal
Box CEO: We're seeing our business become more seasonal