Record losses in the Nasdaq
Meta and Spotify are falling as low as ever
2/3/2022 10:32 p.m
Various prices of tech companies almost fall into the abyss, taking the Nasdaq with them. With its new concept, Facebook cannot save itself from losses. Investors are also worried about a shrinking labor market.
Record falls in the price of Facebook’s parent company Meta and the music streaming service Spotify are causing problems for Wall Street. The Technology Index Nasdaq slipped by 2.7 percent to 14,032 points on Thursday. the Dow Jones closed at 35,111.16 points, down 1.45 percent. The broad one S&P 500 fell as much as 2.44 percent. In addition to the disappointing business figures, the market is struggling with other problems, warned Robert Pavlik, portfolio manager at wealth manager Dakota Wealth. “These are rising interest rates and inflation.” As a result, timid investors who had recently been betting on a recovery in technology stocks would now throw in the towel.
The forthcoming US labor market data also made investors nervous. Experts expect the creation of 150,000 jobs outside of agriculture. However, the figures from the private US employment agency with a surprising job cuts delivered a bad omen. Should official data on Friday also point to a slowdown in the US jobs market, this would be an important reason for the Federal Reserve to raise interest rates cautiously, said investment strategist Soni Kumari of ANZ Bank.
Facebook and Spotify are losing users
The shares of Meta fell by 24.38 percent and, at $213.30, were as cheap as they were a year and a half ago. As a result, Meta’s stock market value shrank significantly. That’s more than the total market cap of online video store Netflix, which also reported disappointing numbers the week before last. Meta’s sell-off was triggered by the first decline in user numbers in Facebook’s history. In this wake, the titles of other networks such as Twitter, Pinterest and Snapchat also collapsed. The papers from Amazon also got under the wheels shortly before the publication of the business figures. They slipped by almost seven percent, although the Internet group’s cloud division was able to win the electronics retailer Best Buy as a customer.
The index of major US tech stocks lost a good four percent. “Investors are looking at Meta and realizing that buying the stock is no longer an investment in the advertising platform,” said Flynn Zaiger, chief executive of marketing firm Online Optimism. It is much more a bet on the success of “Metaverse”. These are virtual worlds in which, according to enthusiasts, a large part of social life should take place. At the same time, such a drastic price movement at a large corporation raises the question of whether this will lead to a longer-lasting sell-off in this sector, analyst Konstantin Oldenburger from online broker CMC Markets pointed out.
The titles of Spotify fell 16.76 percent at times to $159.76. Here, a disappointing outlook for user numbers overshadowed quarterly sales just above market expectations. The basic prospects for the business remain positive, however, analyst Andrew Uerkwitz interjected from the investment bank Jefferies. He sticks to his buy recommendation.
T-Mobile and Ralph Lauren are winners
There were beaming faces from the owners of T Mobile. Thanks to strong business figures, the US mobile operator’s shares rose by 8.89 percent, the strongest in two years. In addition, the outlook for operating profit and customer growth is better than expected, praised the analysts at the bank JPMorgan. The papers were also in demand Ralph Lauren, which rose by 4.48 percent. After a surprisingly large leap in sales in the past quarter, the fashion company raised its full-year targets.