Twitter, Apple, and Google Stocks Tumble on Black Monday
Last Monday, the Global Stocks recorded the lowest point of the biggest tech companies in the world. Everyone in the room, including each and every investors watching and waiting for the latest figure, was holding his breath when this specific moment happened. After long years of trading, this is the mark of such an alarming phase in the economy of the world.
The four giants in the technology were suddenly faced in a remarkable downfall in stocks when the Stock Market opened on Monday. It was recorded that Twitter was 17.2% down, Facebook was 12.6% down, Apple was 11% down, and Google was 7.9% down. This was the first time it ever happened to these four giants in more than one or two decades of business stocks trading.
According to a professor in Stern School of Business in New York University, Roy Smith, it was only due to some corrections in the US market. It was probably because of the overvaluation of the Tech stocks, he said. He explained that, because of the large market of the Chinese retails on tech products, the US tech firms were affected.
The said “stock bleeding” on these four giants was slowly stopped as the trade closed that day. They were able to slightly recover from bleeding, but not totally.
Based on this record, China actually plays an important role in the growth of manufacturing and sales of Apple because most of the parts are manufactured in China and a large percentage of Apple sales come from China. For Facebook, Twitter, and Google, these three giants were no longer materializing in China because of several hacking issues and problems. Apple may not have to worry of the severe impact on its Global Stock market as Mark Williams, the Chief Asia Economist at Capital Economics, said that there is actually no direct threat among tech companies.