Tech stocks have continued their downward trend following disappointing results posted from Microsoft and Alphabet (Google) late Tuesday.
- Microsoft and Google owner Alphabet are on track for their worst daily performance since March 2020—as both were down over 7% in recent days.
- Even companies with good revenue reports were not protected from the decline. Spotify reported a rise in revenue but still fell more than 8%.
- Meta Platforms (Facebook) and Amazon have yet to report, but also saw a decline.
Why it’s news
The tech industry has continued to decline this year after enjoying record-breaking highs the previous two years.
Even with these declines, tech stocks still hold strong. Almost 23% of the S&P 500’s overall value is made up of six major tech stocks—Apple, Microsoft, Alphabet, Amazon, Netflix, and Meta.
Before the announcement, Alphabet and Microsoft were expected to post disappointing earnings results. This is Alphabet’s fifth consecutive quarter of declining sales growth.
Microsoft’s slow earnings were also expected, in large part due to a decline in PC sales. The computers that operate on Microsoft Windows are selling at the worst rate in nearly twenty years.
Meta is expected to announce its earnings Wednesday. Thursday will be a busy day with announcements from Amazon, Apple, and Intel.