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Large-cap tech stocks that came into 2023 with a bang are now struggling, racking up billions of dollars in losses for their shareholders as Wall Street worries about emerging interest rates and rising bond yields.
The so-called “Magnificent Seven,” made up of Apple, Microsoft, Google owner Alphabet, Amazon, Nvidia, Facebook’s parent company, Meta Platforms, and Tesla, have lost a staggering $1. 2 trillion valuation since the most sensible of S’s.
Apple has noted that its market capitalization has fallen nearly a portion of $1 trillion in the past three months, according to Insider’s calculations, and the stock has plunged 15% amid signs that the economic slowdown in China will hurt its profits.
Tesla lost nearly $200 billion (just under a quarter of its total market price) in a slide that worsened last week after the “mini-disaster” of the third-quarter earnings call, in which CEO Elon Musk warned of an economic slowdown and falling production. delay. of the Cybertruck.
The other actions of the Magnificent Seven have also been suffering since the end of July. Stocks took a hit as the Federal Reserve pronounced it would keep interest rates at high levels until 2024 in a bid to kill inflation, while rising bond yields also sparked panic on Wall Street.
These losses come after an excellent first half of the year for the big ones, with the huge explosion of interest in language equipment such as ChatGPT, which encouraged investors to invest in AI-related stocks.
Each of the Magnificent Seven has yet racked up double- or triple-digit gains so far this year, with the organization accounting for just 30% of the S’s overall market cap.