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Tech giants’ market cap slumped $1.5 trln 

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Investors have turned their backs on tech stocks after a series of disappointing results from the biggest names in the industry, including Apple, Google’s parent Alphabet, Microsoft, Amazon and Facebook parent Meta.

According to data presented by TradingPlatforms.com, the Big Five tech giants have collectively lost over $1.5 trln in market cap in less than a month.

The latest slump came after an already disappointing year for tech stocks, which were some of the biggest winners during the early stages of the pandemic.

The tech-heavy Nasdaq has lost almost 30% of its value in 2022, and this huge drop was hastened by weak third-quarter earnings from the industry heavyweights.

According to YCharts data, the combined market cap of the Big Five tech companies plunged by 22% in the last three weeks, falling from over $6.9 trln to $5.36 trln. Although Apple, Alphabet, Microsoft, and Meta all saw their shares tank in the wake of their earnings report, Amazon was the hardest hit.

The e-commerce giant narrowly missed sales expectations for the third quarter, but what mostly spooked investors was its guidance for the important holiday quarter, which predicts a significant slowdown in year-over-year sales growth.

Immediately after the announcement, Amazon shares plunged more than 18% to less than $90 in after-hours trading, pushing the stock to its lowest level since early 2020 and down 45% for the year.

The YCharts data show the market cap of the eCommerce giant plunged by a jaw-dropping $246.1 bln in just three weeks, falling from $1.23 trln in the last week of October to $983.9 bln last week.

Meta’s stock value down 18%

Meta Platforms Inc has had a challenging year, losing over $600 bln in market cap.

In October, the company announced a 52% YoY drop in third-quarter profits and disappointing forecasts for the holiday quarter. Investors have been concerned about Meta’s rising costs and expenses, which jumped 19% YoY in the third quarter to $22.1 bln.

Also, the company’s operating income dropped 46% from the previous year to $5.66 bln.

Worrying results caused Meta’s stock value to plummet by $105 bln in two days. Statistics show the tech giant’s market cap plunged by 18% in the last three weeks, falling from $364.6 bln to $296.6 bln.

Alphabet follows with a 10% drop in market cap during this period. The company has reported its weakest quarter-over-quarter growth since 2013, except for the period early in the Covid-19 pandemic.

Revenue growth slowed to 6% from 41% a year before as the company faced a continued drop in online ad spending. Last week, Alphabet’s market cap stood at $1.21 trln, down from $1.35 trln in October.

Apple’s share price has also been affected by a downturn in consumer demand, but it still retains more of its value than many other tech stocks. Statistics show Apple’s stock value declined by 5% since the end of October, landing at $2.33 trln last week.

The tech giant Microsoft has seen the smallest market cap drop of all five companies, with its stock value falling by $32 bln or 1.7% in this period.