The Big Tech companies, Google, Apple and Twitter crashed on Thursday after the announcement of mix quarterly statements from top tech companies. Investors were waiting for the reports for making the further decision about their investments.
Shares went down after the reports and both S&P 500 and Nasdaq were down by 1% each and wall street could have a weaker start on Friday.
Earlier reports showed that the largest companies have massive growth during the pandemic due to online shopping, video streaming and other technologies.
The companies such as Alphabet and Facebook announced a massive rise in advertising sales but some companies such as Facebook are uncertain about the future and said that 2021 can be a difficult year. Alphabet stock value increased by 7% while the Facebook stock was declined by 1%.
Apple stock value went down over 5% because its new iPhone model missed the sales benchmarks, wiping out $100 billion from apple stock market value. On the other hand, Apple quarterly revenue and profit beat all the estimates.
According to market experts, the earnings can drop to 13% in the S&P 500, compared to an increase of 4.5% in the technology business.
Twitter also crashed and shares dropped by 17% as the company reported few new users than Wall street expectation. If there is more decline on Friday, Twitter will hit its lowest since March.
Amazon is expecting more sales in holiday seasons but it shares also went down by 2% after it adjusted its costs related to pandemic.
The increasing number of Corona patients, Thursday reports from tech companies and no positive outlook for economic recovery has shaken the Wallstreet market and S&P500 was down 3% this week.
Analysts are predicting that the S&P 500 can do down by 4% in 2020, compared to 2% year-to-date rise, without the major Tech companies.According to Bespoke, Wall street market now heavily relies on tech heavyweights ever before for its gains.