Home Market Cap of the Big Five Tech Giants Slumped by $1.5T in Less than a Month
Finance News

Market Cap of the Big Five Tech Giants Slumped by $1.5T in Less than a Month

Jastra Kranjec Finanace Writer Author expertise
Fact Checked
Fact Checked
Everything you read on our site is provided by expert writers who have many years of experience in the financial markets and have written for other top financial publications. Every piece of information here is fact-checked. We sometimes use affiliate links in our content, when clicking on those we might receive a commission - at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
We do our best to help you make intelligent financial decisions. Tradingplatforms.com is compensated if you access certain products or services offered by eToro USA LLC and/or eToro USA Securities Inc. and other brokerage companies. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success. This however does not affect our assessments of the brokers, their features, and their overall rating.

Investors have turned their backs on tech stocks after a series of disappointing results from the biggest names in the industry, including Apple, Alphabet, Microsoft, Amazon, and Meta.

According to data presented by Trading Platforms, the Big Five tech giants have collectively lost over $1.5trn in market cap in less than a month.

Amazon’s Market Cap Dipped by $245B in Three Weeks, the Biggest Drop Among the Big Five

The latest slump came after an already disappointing year for tech stocks, which were some of the biggest winners during the early stages of the pandemic. The tech-heavy Nasdaq has lost almost 30% of its value in 2022, and this huge drop was hastened by weak third-quarter earnings from the industry heavyweights.

According to YCharts data, the combined market cap of the Big Five tech companies plunged by 22% in the last three weeks, falling from over $6.9trn to $5.36trn. Although Apple, Alphabet, Microsoft, and Meta all saw their shares tank in the wake of their earnings report, Amazon suffered the hardest hit.

The e-commerce giant narrowly missed sales expectations for the third quarter, but what mostly spooked investors was its guidance for the important holiday quarter, which predicts a significant slowdown in year-over-year sales growth. Immediately after the announcement, Amazon shares plunged more than 18% to less than $90 in after-hours trading, pushing the stock to its lowest level since early 2020 and down 45% for the year.

The YCharts data show the market cap of the eCommerce giant plunged by a jaw-dropping $246.1bn in just three weeks, falling from $1.23trn in the last week of October to $983.9bn last week.

Meta’s Stock Value Down by 18%, Alphabet Follows with a 10% Drop

Meta Platforms Inc has had a challenging year, losing over $600bn in market cap. In October, the company announced a 52% YoY drop in third-quarter profits and disappointing forecasts for the holiday quarter. Investors have been concerned about Meta’s rising costs and expenses, which jumped 19% YoY in the third quarter to $22.1 billion. Also, the company’s operating income dropped 46% from the previous year to $5.66bn.

Worrying results caused Meta’s stock value to plummet by $105bn in two days. Statistics show the tech giant’s market cap plunged by 18% in the last three weeks, falling from $364.6bn to $296.6bn.

Alphabet follows with a 10% market cap drop in this period. The company has reported its weakest quarter-over-quarter growth since 2013, except for the period early in the Covid-19 pandemic. Revenue growth slowed to 6% from 41% a year before as the company faced a continued drop in online ad spending. Last week, Alphabet’s market cap stood at $1.21trn, down from $1.35trn in October.

Apple’s share price has also been affected by a downturn in consumer demand, but it still retains more of its value than many other tech stocks. Statistics show Apple’s stock value declined by 5% since the end of October, landing at $2.33trn last week.

The tech giant Microsoft has seen the smallest market cap drop of all five companies, with its stock value falling by $32bn or 1.7% in this period.

Question & Answers (0)

Have a question? Our panel of experts will answer your queries. Post your Question

Leave a Reply

Write a Review

Your email address will not be published. Required fields are marked *

Jastra Kranjec Finanace Writer

Jastra Kranjec Finanace Writer

Jastra is an editor, writer, and PR specialist with years of experience in news, research, and report writing. Over the years, she has worked in different fields of journalism and public relations, including politics, economy, and financial markets. As well as TradingPlatforms.com, Jastra has written for Inside Business,The Business Mogul, Business Today, Startups Magazine, StockApps.com, and Buyshares.

Jastra graduated from The University of Zagreb with a Master's Degree in Journalism in 2008. Since then, she has used her writing skills to publish a range of educational articles for TradingPlatforms and continues to increase her understanding of the finance and crypto space.