Tech companies are suffering from the current hostile stock market environment as stock markets around the world are plummeting following concerns over China. All tech companies are tanking right now, with some suffering from a stark correction. When the stock markets opened, compared to Friday’s (21st Aug) closing price, Facebook was down 12.1 percent to $75.62, Apple was down 10 percent to $95.17, Amazon was down 6.4 percent to $463.03, Microsoft was down 5.8 percent to $40.59. And the list goes on and on.
Smaller companies suffered as well. Netflix opened down 14.7 percent to $88.67 following a few months of great performance. Twitter was down 8.9 percent to $23.56.
Overall, hundreds of billions of market capitalization have disappeared overnight. Many of them are already recovering from this tough trading day — for example, Apple is “only” down 3.2 percent now. But still, it’s quite impressive to see all these public companies in the red at the same time.
In the current correction phase, China’s stock markets had its worst trading stats since 2007 and both Europe and US followed the suit.
Many traders hope that Beijing would take support measures, such as an interest rate cut, over the period after China’s main stock markets slumped 11 percent last week. It is a wait & watch game for what happens next….is it just a short term correction or will it last longer?