April has been a miserable month for tech, with Apple, Microsoft, Amazon, Alphabet, and Tesla set to lose a combined trillion dollars. Amazon.com Inc.

Amazon’s biggest drop since 2006 caps dismal month for tech

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2022-05-12 18:30:13

April has been a miserable month for tech, with Apple, Microsoft, Amazon, Alphabet, and Tesla set to lose a combined trillion dollars.

Amazon.com Inc. shares collapsed on Friday, with a loss in market value that ranks as one of the worst in Wall Street history after it gave an outlook that was seen as disappointing.

The stock sank 14% in its biggest one-day drop since July 2006, with shares closing at their lowest level since June 2020. The selloff erased $206.2 billion off the company’s market valuation, a wipeout exceeded only by Meta Platforms, which shed $251.3 billion in market value after a disastrous report of its own in February.

The slump was the latest hit to the biggest names in the U.S. stock market, which came under heavy pressure in April amid a tumultuous earnings season and concerns over Federal Reserve policy. The Nasdaq 100 Index fell 4.5% on Friday, bringing its April decline to 13%, its biggest one-month drop since October 2008.

“Things are so weak you want to hide under your desk,” said Michael Matousek, head trader at U.S. Global Investors Inc. “People are coming to the realization that the easy money is over. There are concerns about rates going higher, about Covid, the war, and now you’re seeing weakness in the tech titans that led everything up for so long.”