Just weeks after Apple and Amazon made history by breaking the $1T valuation barrier, their stocks are headed back to earth in the worst day for tech stockholders since 2011.
Poor performances across the tech sector dragged the entire market down: Tech stocks in the S&P 500 fell 4.85%, and the Nasdaq fell 4.1%. But analysts can’t agree on whether the downturn is over or just beginning.
Hitting a bump in the road, or driving off a cliff?
Tech analyst and venture capitalist Gene Munster told CNBC that he expects stock of tech giants such as Netflix, Amazon, and Facebook to fall at least another 5%. But other investors think the market will rebound.
“We look at this as a buying opportunity,” wealth-management executive Dryden Pence told CNBC. “I would have my shopping cart out there.”
But Bezos and his buddies aren’t laughing
Amazon’s slump erased more than $10B from Jeff Bezos’ personal fortune in less than 24 hours (we forbid you to feel bad for him, he’s still got another $142B to spare).
The rest of the tech sector got hit just as hard: 80% of the S&P 500’s information and tech stocks have slumped.
In the past week, Netflix fell 11%, Amazon fell about 10%, Alphabet fell 7%, and Facebook, Apple, Twitter, and Microsoft all fell about 4%.