Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Big Tech Stocks’ Latest Dive Snuffs Out Hopes They’ve Hit a Bottom

Published 24/05/2022, 19:02
Updated 24/05/2022, 19:02
© Reuters.

© Reuters.

(Bloomberg) -- Megacap technology stocks are sinking again along with hopes that this year’s selloff has reached the point of exhaustion. 

Google parent Alphabet (NASDAQ:GOOGL) Inc. tumbled as much as 8.6% on Tuesday after Snap Inc (NYSE:SNAP). cut forecasts issued just a month ago, citing deteriorating macroeconomic conditions and raising concerns about a broad slump in digital advertising.

The turmoil is giving investors flashbacks to some of the worst days of the pandemic, with Alphabet at a 52-week low and on track for its worst drop since March 2020. Meanwhile, Amazon.com Inc (NASDAQ:AMZN). sank 5.9%, leaving the e-commerce giant on the brink of falling below $1 trillion in market value for the first time since April 2020. 

“It appears to be clear that most companies will not avoid the troubling macro backdrop,” said Edward Moya, senior market analyst at Oanda.

The tech-heavy Nasdaq 100 Stock Index has fallen nearly 30% from its peak last year as the Federal Reserve pushes an aggressive campaign of rate hikes to fight soaring inflation. The stock slump has brought price-to-estimated profit gauges back near their long-term averages, fueling optimism that perhaps the selling could be nearing a bottom. 

Facebook (NASDAQ:FB) owner Meta Platforms Inc. sank as much as 10% on Tuesday to within striking distance of a new low. The social media giant has fallen more than 50% from a September record amid its own problems of slowing user growth.

Investors are bracing for more volatility with earnings due from chipmaker Nvidia (NASDAQ:NVDA) Corp. on Wednesday along with the release of minutes from the Fed’s last FOMC meeting.

©2022 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.