Big tech krijgt klappen
November 4, 2022 - When Meta Platforms’ stock dived by almost 25% in October -- plunging with investors’ loss of faith in its metaverse -- it was just one of the tech giants that have suffered over the past year.
The biggest U.S. tech companies are among the worst performing this year amid soaring inflation, rising interest rates, fears of recession, and a slowdown in digital advertising.
For years, investors saw Facebook, Amazon, Apple, Netflix and Google -- members of the so-called FAANG group -- as invincible technology companies. But the past year has revealed that they’re no longer invincible.
Investors have changed their thinking about companies’ promises of long-term growth versus short-term profits. Meta Platforms’ Chief Executive Officer Mark Zuckerberg’s metaverse operations have lost $9.4 billion in the first nine months of this year.
Meta’s share price has plummeted by more than 73 per cent in the past 12 months. Most of the other FAANGs have had a hard time, too, with Alphabet, Amazon and Netflix seeing losses of 43, 48 and 59 per cent, respectively.
Only Apple is treading water -- just eight per cent down year on year. The iPhone maker is worth more than Alphabet, Amazon, and Meta combined, with a market value of $2.307 trillion. The market capitalizations of its three tech peers totals $2.19 trillion.