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Big tech stocks lose US$3 trillion in market cap in the last year; Meta shares plunge 25%

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빅테크 시총, 1년만에 4천조원 증발…메타는 25% 폭락

The biggest tech companies in the U.S have shed a combined three trillion U.S. dollars in terms of their market caps in just over a year.
Amazon, Meta and Microsoft are some of the worst affected as a series of disappointing earnings reports have failed to excite investors, and in some cases, even making investors sell up completely and walk away.
Lee Eun-jin reports.

Investors are reacting quickly to the latest third-quarter reports,… especially regarding big tech stocks.
Seven big-name tech companies… Alphabet, Microsoft, Meta, Amazon, Tesla, Netflix, and Apple… together lost a staggering 3 trillion U.S. dollars of market cap value between October 2021 and October 2022.
Last year, the good times rolled for these large-cap technology stocks with strong growth in 2021 – but shocking as it seems, all good things eventually come to an end.
2022 brought war to Europe, global inflation, and sky-rocketing interest rates… all factors impossible to ignore.
Of the 7 big tech companies, Apple was the least affected… posting a loss of $34-point-6-9 billion U.S. dollars… while Alphabet was the biggest loser seeing almost 700 million dollars wiped from the company’s value.
And while Elon Musk was busy finalizing his takeover of Twitter, Tesla’s market cap dropped over 326 billion dollars from a year ago.
Meanwhile, Wall Street described Meta as a “train wreck” as investors bailed out en masse.
The value of Facebook’s parent company plunged by 700 billion U.S. dollars after the release of its third-quarter report and shares dipped below $100 dollars for the first time in 6 years.

“You know, the earnings release from Meta was poor. And I think that’s going to cycle through also with Google. And I think investors now are looking at the alternatives, dividend-paying stocks, companies that have good cash flows and higher quality perhaps. And I think those are the type of companies that investors kind of want to hang out in while we get through this recession that everyone seems to be talking about. That seems to be coming pretty soon.”

The holiday season waits in the fourth quarter, but early holiday marketing has so far done little to boost sales growth.
Even the biggest tech companies are facing the realities of high inflation and receding consumer demand.
With almost no hope of improvement for the fourth quarter, the industry is only hoping for smaller losses.
Lee Eunjin, Arirang News.

#Big_tech #Meta #Arirang_News

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2022-10-28, 12:30 (KST)

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