The companies technological lead the stock market collapse this Monday, with Manzana and Nvidia at the head of the massive sale of shares due to the panic in the market over a possible recession in USA.
High Yield Stocks of Alphabet, Amazon, Goal, Microsoft and Tesla fell as much as 12.2 percent in premarket trading, Reuters reported.
Shares of chipmakers also fell, with Advanced Micro Devices, Intel, Supermicrocomputer and Broadcom falling to 10.3%.
The stocks’ plunge followed a weak U.S. jobs report on Friday that pushed investors toward safe havens and fueled bets that the US Federal Reserve (Fed) will have to cut interest rates sooner or further than expected to help the world’s largest economy grow.
Apple and Nvidia, the most complicated
During the weekend, Berkshire Hathaway of Warren Buffettsaid it had halved its stake in Manzana – the conglomerate’s largest holding – in a sell-off that raised concerns about the outlook for the technology industry.
Meanwhile, the shares of Nvidia took a hit after a report that the launch of its next chips intelligence artificial could be delayed for three months due to design flaws, which could affect customers like Meta (the parent company of Facebook), Google from Alphabet and Microsoft.
After boosting gains in Wall Street For more than a year, big tech stocks have come under pressure in recent weeks also on signs that the payoff from heavy investments in AI would take longer than some investors had initially expected.
Shares of Amazon, Microsoft and Alphabet — the three largest cloud computing providers — fell as their earnings reports dashed big bets on massive investments in artificial intelligence that quickly translated into growth.
“Expectations have perhaps become too high for the group of companies called the Magnificent Seven. Their success has made them untouchable in the eyes of investors and when they fall short of greatness, the knives come out,” said Dan Coatsworth, investment analyst at AJ Bell.
Source: Ambito
