Last Wednesday, tech stocks lost approximately $172 billion (£130 billion). However, last Wednesday, analysts say that it is still set to worsen as pre-market trading shows that each of the so-called FAANG firms could stand to lose more value.
Since Wednesday night until Thursday, Amazon was the affected the most, losing a further 2.24 percent on top of the 6.15 percent slide that it experienced last Wednesday which wiped approximately $56 billion off the market capitalisation of the company.
Facebook and Apple have been the next biggest losers on Thursday morning, taking a 1.57 percent and 1.84 percent loss in pre-market trading respectively. Apple experienced nearly $51bn loss on Wednesday. It was worth almost six times the entire value of Snap, which also dropped to a new all-time low.
Netflix was considered as the biggest loser by percentage last Wednesday with an 8.38 percent drop. It was down by 1.5 percent in addition to squandering around $13 billion of its market value. Meanwhile, Google, which sunk $36.7bn of its market cap on Wednesday, has lost 1.28 percent in pre-market activity.
The whole day saw the largest single-day drop of Nasdaq in a period of seven years.
David Cheetham, the chief market analyst of XTB, stated: “Given that there was no real fresh news to cause the large drops, it seems to be more a case of the US finally waking up to several sizable threats to what is the longest bull market in history.”
An investment analyst at The Share Centre, Helal Miah, added: “This global stock market sell-off should not come as a big surprise, but the question that some investors will be asking is one of whether we will see a quick bounce back like we saw at the start of the year.”
He continued: “This time round it may be different; previously the sell-off and bounce back had been led by the FANGS and tech companies. With increasing questions about these companies’ valuations and all the other overhanging worries in the global economy, it may be a while until we see those all-time highs again.”