Technology stocks are suffering and it seems like they’re going through one of their biggest beatings in years. The growth of the tech industry as an engine of the global economy is slowing, due to the recent decoupling of FAANG stocks.
This week, Facebook Inc. gave up the biggest loser spot to Amazon.com, with Amazon losing $53 billion in market value and falling by 7.4 per cent. Netflix was the second-biggest loser in the FAANG group of stocks. This isn’t actual money being lost though. Donald Trump’s remarks don’t mean Amazon’s coffers are down $53 billion.
‘The “flu” that Facebook got is now spreading to the others,’ says Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co.
Some reports say this is due to Trump targeting Amazon and claiming that the tech giant doesn’t pay enough tax.
Trump has voiced his distaste for Amazon in the past, and for The Washington Post and Jeff Bezos, the owner of both.
In December, he lashed out against Amazon on Twitter for squeezing low prices out of the US Post Office. He even called the company an ‘antitrust violator’. The consequence was a stock drop of 1.4 per cent. However, at the time of writing, Amazon’s stock seems to be rising ($1,377.98 on 29 March at 10:00 a.m. and $1,447.34 at 4:00 p.m.). In fact, Amazon’s long-term growth is one of the most stable of any publicly traded company. The question isn’t how well Amazon is going to do next quarter, or next year, or even over the next five years. The question is how well it will do in the next 20 years and it’s difficult to imagine Amazon not continuing its solid growth, even with foreign competitors emerging.