According to a report by CNBC, Alphabet, Microsoft, Meta, Amazon, Tesla, Netflix, and Apple lost a combined $3 trillion in their market cap in just over a year (from October 2021 to October 2022).
Majority of the losses are accounted for by the first four, who lost about $2.5 trillion among themselves. Here is a break down of their losses:
How 7 big tech companies lost $3 trillion in market cap in just one year
1. Alphabet: The Google parent company missed analyst expectations in 2022 and its third quarter earnings was not much better. For the duration under consideration, Alphabet lost $698.02 of its market capitalisation and it is now worth $1.244 trillion, a huge drop from its almost $2 trillion valuation in 2021. Its losses were blamed on reduced YouTube ad revenue, general lower ad spending, and reduced traffic acquisition costs.
2. Microsoft: The Windows owner is also a major loser with a $692.82 billion valuation shaved off from its former market cap by this time in October 2021. BBC reports that the company’s execs blamed weakened demand for its computers and other technologies for its disappointing results.
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3. Meta: With a current market cap of $280.31 billion, Meta is no longer one of the top 10 most valuable companies in the US after it shed a whopping $588.21 billion and is now worth $280.31 billion. Its losses are said to be caused by the slowed ad revenue on Facebook as well as its ‘super-sized’ investments in the metaverse.
4. Amazon: Still one of the big boys, the e-commerce giant dropped $540.57 billion in its valuation. In Q3 2022, the company’s stock dropped by 20%. Despite its AWS division waxing stronger, operating costs and slowed shopping habits post-pandemic made its income dip, as TechCrunch reports.
5. Tesla: After tasting the trillion dollar mark, the EV maker was brought back to reality as it lost $326.99 billion of its valuation. Its eccentric CEO’s Twitter interests and the drama that ensued caused investors to slightly lose faith. Additionally, the company says that inflation and chip supply shortage staggered its profits. Although, we did report that Musk claims to have a plan to make the company top giants like Apple and Saudi Aramco.
6. Netflix: The streaming giant has been facing troubling times since the turn of the year after it began losing subscribers. It has blamed this on password-sharing, theaters reopening, and so on. With a loss of $160 billion, the company is now worth $133.46 billion. It has rolled out plans to ensure that its market cap rises again in 2023, we await those results.
7. Apple: The iPhone makers lost just $34.69 billion and is still one of the biggest winners among the big tech companies in 2022. Likely, its iPhone 14 release ensured that it covered losses that it would have otherwise incurred.
Looking at the losses these tech firms suffered, it is clear that the economy downturn is bad. Likely, there could be more cost-cutting measures from the biggest losers like Alphabet, Microsoft, Meta, and Amazon.
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