Facebook Shares Suffer Worst Drop This Year as Tech Losses Mount By Bloomberg
(Bloomberg) — Technology stocks were hammered again on Monday, extending recent declines for some of the world’s most valuable companies, which have been under pressure amid rising bond yields.
This was particularly difficult for those who were affected by the sale. Facebook Inc (NASDAQ:). The biggest drop in sales for nearly a full year was caused by reports that users of the company’s social-media platforms experienced outages around the world. A whistleblower will also be questioning the company before Congress. The shares were down 4.9% on the day, their lowest level since Nov. 9.
The Stock Index, the largest U.S. tech company, fell 2.2% more than three of its biggest competitors. It lost at least 2% over the last 11 trading days. Amazon.com Inc. (NASDAQ:) also fell besides Facebook. Apple Inc (NASDAQ) also dropped by 3%. Sliding 2.5% Additionally, Microsoft Corp (NASDAQ:). Alphabet Inc. declined 2% and lost 2.1%.
After a sharp rise in Treasury yields last week, technology stocks are feeling the pinch of having to sell. These yields are what are used for calculating the current value of future profit. The Nasdaq 100 suffered its largest weekly loss in weeks since February due to a sudden rise in these yields.
Some of its most important members are beginning to feel the consequences, with the Nasdaq100 now appearing as if it will fall for a fifth consecutive weekly week. Apple, the world’s most valuable company, on Monday joined Facebook and Amazon.com in correction territory, which is signified by a drop of at least 10% from a peak. Apple’s iPhone maker now has a market capitalization of $300 billion, down 11% since Sept. 7, 2007.
Amazon.com now trades lower than at the beginning of this year, having lost 15% from its July peak. Facebook’s Sept. 7 close high has fallen 15% Alphabet is down 8% from its record, though it’s still up 53% in 2021.
©2021 Bloomberg L.P.
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