Technology stocks fell again on Monday and deepened their steep losses from the end of last week that saw shares of social media companies Facebook and Twitter plunge around 20% each in a single day. By Monday, even once-mighty Netflix seemed weak in the knees, with the streaming media darling down almost 6% in mid-day trading.
It’s a sharp turnaround for a group that had long been the stock market’s undisputed leader.
Tech stocks in the S&P 500 slumped 1.7 percent Monday for the sharpest loss among the 11 sectors that make up the index. It follows a rough week for the tech industry after earnings reports from Facebook and Twitter raised concerns about their growth and sent their shares plummeting.
Twitter dropped 5.8 percent Monday to $32.16, following its 20.5 percent plunge on Friday. Facebook was down 4.5 percent Monday to around $167 after shares fell 19% last Thursday for a stunning $119 billion drop in market value that was the biggest one-day loss in Wall Street history.
Netflix was down 5.7% Monday to $335.25 per share — some 20% below a recent high of $419 a share on July 9.
My Take from Brownie Bytes
Social media and movie companies (Netflix, Amazon) are alienating at least half of their customer base with their business practices and politics. No business can afford to antagonize half of the market and expect to grow.
Amazon is more diversified so they aren’t feeling the hit as much, yet…. But when more customers discover and understand the counterfeit product problem Amazon has – yes, I’ve unfortunately and unknowingly purchased some (the reviews aren’t always the truth) – then Amazon stock has a chance to wilt too….