- The most widely watched tech stocks saw their collective market value drop by $US141 billion on Tuesday amid a broader market sell-off.
- That amount is about equal to the market capitalisation of McDonald’s.
- The biggest loser among the tech giants was Amazon, which lost $US51 billion in market value.
You could just about buy McDonald’s with the amount of value the most widely watched tech stocks shed on Tuesday.
If you include Microsoft’s market losses, you could snap up Burger King’s owner as well – or a heck of a lot of Big Macs and Whoppers.
On a down day for the markets, the big tech stocks got crushed. Collectively, Facebook, Apple, Amazon, Netflix, and Google parent company Alphabet, lost $US141 billion in market value, as their stocks declined 4.5% on average.
Microsoft, which has been vying with Apple for the title of most valuable public company in the world, saw its shares fall 3%, as the company’s market capitalisation dropped $US27 billion.
By comparison, McDonald’s has a market value of $US143 billion and Restaurant Brands International, the parent company of Burger King, has a market value of $US26 billion.
Amazon was the biggest loser
Among the big tech shares, Amazon was the biggest loser. With its stock falling nearly 6% to $US1,668.40, the e-commerce giant’s market capitalisation plunged $US51 billion. That’s about the same amount that General Motors is worth in total.
Apple was the next biggest loser, at least in terms of the market value it lost. The iPhone maker saw its capitalisation drop $US39 billion thanks to its stock falling 4% to $US176.69.
In terms of percentage declines, Netflix was second to Amazon. Its stock fell 5% to $US275.33, resulting in a drop in its valuation of $US6.5 billion.
The sell-off in shares of the big tech companies has been going on for months amid broader concerns about slowing growth and stricter regulations. Although Facebook only saw its shares and market valuation drop by 2% Tuesday, its stock has declined the most from its peak this year of any of its peers. Since hitting their apex in July, Facebook’s shares are down nearly 37% at $US137.93.
Netflix is a close second in that category. Its shares are down 35% since they peaked in June.
Tuesday’s decline in tech shares extended far beyond the giants, with the tech-heavy Nasdaq Composite index falling 3.8% to $US7,158.43.
Intel’s shares fell by 5% to $US47.75. Western Digital, Micron, and Nvidia all saw their shares drop by more than 7% to $US43.04, $US36.88, and $US157.11, respectively. E-Trade declined by 8% to $US48.65. And AMD shares fell by a whopping 11% to $US21.12.
- Read more about the FAANGs:
- Apple fans are betting the booming ‘services’ business will take the sting out of an iPhone slowdown – here’s why they might get a painful surprise
- Amazon’s ad sales are up 150% in just the last month – and it looks like it will be a happy holiday season for Google and Facebook, too
- Apple told investors not to worry about iPhone sales – but now it seems worried about them
- Investors focused on Apple’s disappointing iPhone sales are missing the company’s hidden goldmine
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