Tech stocks await AI's real reckoning
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By John Foley
NEW YORK, Aug 7 (Reuters Breakingviews) -Some $3 trln has been wiped off US technology firms’ value, hammering artificial intelligence champions like Alphabet and Nvidia. It may be more a case of feelings and flows than shifting assumptions about the value of silicon smarts. If that changes, the true pain begins.
Full view will be published shortly.
Follow @johnsfoley on X
CONTEXT NEWS
The fall in U.S.-listed technology shares erased over $3 trillion of market capitalization between July 10 and Aug. 6, based on the performance of the FR United States Technology Index, which contains 416 stocks.
Alphabet, Amazon.com and Microsoft all fell the day after reporting their earnings, while Facebook owner Meta Platforms’ shares rose just under 5%.
Over three-quarters of tech firms in the S&P 500 Index had beaten analysts’ expectations for earnings in their second-quarter earnings as of Aug. 6, according to LSEG. Of the 67 in the index, 19 had yet to report.
Editing by Jonathan Guilford and Sharon Lam
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
