Big Tech Stocks Apple, Microsoft, Google Tumble, OZ Market Set To Fall
Big tech stocks in particular Google, Microsoft and Apple have started to tank in the US and analysts are tipping that the Australian market will be affected by the move.
Overnight Wall Street fell sharply with the S&P 500 and the Dow industrials suffering their worst daily percentage drops in six weeks.
Technology shares fell 2.1% last with Google parent Alphabet, Microsoft and chip maker Nvidia each losing more than 2%.
The S&P 500 tech sector is up 16% this year, but has fallen nearly 3% in June as some investors questioned whether the technology group’s run-up had been overdone.
Earlier this month Apple shares were stung by a broker downgrade sending the stock down 12%.
Mizuho Securities cut its rating on the iPhone maker to “neutral” from “buy” and reduced its price target to $150 from $160 per share.
“The stock has meaningfully outperformed on a year-to-date basis and we believe enthusiasm around the upcoming product cycle is fully captured at current levels, with limited upside to estimates from here on out,” said analyst Abhet Lamba.
Robert Boroujerdi, global chief investment officer at Goldman Sachs Group Inc., said that low volatility in Facebook, Amazon, Apple, Microsoft and Google parent Alphabet, may be blinding investors to risks such as cyclicality and regulation.
Apple’s new iPhone is also said to be lacking the tech to match rivals’ data speed, according to a recent Bloomberg report.