Technology markets this year have witnessed various events that have led to severe turmoil and have seen record profits and gains in the stock market. But the growth that has suddenly disappeared after the sharp decline in recent days is due to the current conflict between countries where many technology companies are located. Some technical companies have been affected by the fees and restrictions they have in some parts of the world. The cries of commercial wars between the United States and China are rising, whether directly or indirectly.
Global panic has led to a significant drop in the shares of many companies on both sides. We have seen the Nikkei fall to nearly 1.03%, which also led to a 1% drop in the Topix index and a 2% Shanghai index.
On the other hand, US technology companies in the FAANG have suffered a huge loss, which the US stock exchange has turned red. The FAANG group of companies – Facebook, Amazon, Apple, Netflix and Google – collectively lost about $ 1 trillion in their market value, Compared to the high levels during the last period in last week’s trading.
Despite the strength of these companies, but their shares have fallen to their lowest levels since 52 weeks ending last week, which led to the loss of exactly 1.02 trillion US dollars compared to the last recorded value of its part, as follows:
- Facebook lost about 253 billion US dollars.
- Amazon lost about $ 280 billion.
- Apple lost about 253 billion US dollars.
- Netflix lost $ 67 billion.
- Google has lost about $ 164 billion.
The reason for these large losses is as follows:
First, Apple: which has seen weakness in the demand for the three new phones, iPhone XR and iPhone XS and iPhone XS Max, which caused the decline in prices of shares to about 4.8%, an unusual reception for Apple phones as usual, and in other reports Apple said it will begin production of iPhone X phones to cover the expenses and poor weakness of the demands of new phones.
Second, the Facebook company: which is also known to all of its problems in its scandals about the intrusion of privacy to users. There have been a lot of scandals recently within Facebook, with everyone wanting Mark Zuckerberg to relinquish full control of the Facebook board, leading to internal conflicts in the company and favoring some of those responsible for others.
Third, Amazon: Amazon’s expectations for the fourth quarter were lower than investors’ expectations, which affected the value of the company’s shares.
Fourthly, Netflix and Alphabet: which were affected by the poor performance of previous companies in the financial market also negatively.
With this holiday season and after the blackout of users on Black Friday deals, the impact of this shock may be reduced to the five companies we mentioned and other tech companies, and we refer specifically to Amazon, but the wound will continue to bleed until it meets a strange rise in the coming period.