Shares of Amazon and Google suffered record drops since 2008 and dragged the high-tech Nasdaq index with them

Shares of Amazon and Google-owning holding company Alphabet have seen their biggest drop since the 2008 financial crisis. The reason for this was the weak financial results of tech giants. The fall of Apple was not so significant, but due to the negative dynamics of the three companies, the Nasdaq index sank by 13.3% in April.

Image source: sergeitokmakov / pixabay.com

Since the beginning of 2022, US investors have begun to back away from the technology sector, fearing rising inflation and rising interest rates. The situation was exacerbated by the events in Ukraine, the subsequent rise in fuel prices and the persistent shortage of personnel – all of these factors began to affect the income of the technology sector. The last time Amazon and Google experienced similar events was in November 2008, when Amazon lost 25.4% in price (23.8% in April 2022) and Google lost 18.5% (and 18% in April 2022). G.).

Amazon’s largest online retailer and cloud provider blamed falling online sales and rising costs for the record slowdown in Amazon’s revenue growth. Apple had a 9% quarterly revenue growth, but the company scared investors of supply chain problems and the suspension of production in China due to pandemic-related quarantines and lockdowns – in the second quarter, adverse factors could cost the company between $4 billion and $8 billion. Apple shares fell 4%. Alphabet upset investors with a slowdown in growth – a year ago the pandemic brought abnormally high numbers, and now the population is returning to work.

The negative of the three major players caused a drop in the Nasdaq index, which sank by 13.3% in April alone. Here again, a comparison with the 2008 crisis suggests itself: then in October, the Nasdaq “blown away” by 18%, and in November by another 11%.





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