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.
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.”
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%.