The apparent tech boom time seems to be coming to a final countdown. The silicon valley bubble that kept on inflating saw a minor hiccup during the 2008 financial crisis, however, it did sustain itself quite impressively during the time. However, financial analysts and other market experts claim that the companies that essentially run the tech market now seem to be dropping in value after the rest of the world economy seems to be limping back to recovery. The big four companies have reported a drop in stock prices since the beginning of this year. Market experts claim that this trend is very likely to go on for a while.
False sense of security
As a sense of security, most of the market investors played the tech stock markets and invested heavily in the large cash pile during the emergency situations that were faced during the financial crisis nearly a decade ago. The problem, however, turned out to be the further diluted market which resulted to a lower stock value with excessive investments. The excessive investments where most of the investors play portfolio that they had piled on elsewhere. During the crisis, most of this was off-loaded into the tech market as it was a safer bet during crashing financial institutions and global economies.
The Standard and Poor’s index is down by nearly 10 percent, and so is the supposed big four F.A.N.G. tech companies. FANG stands for four of the largest dominating companies such as Facebook, Amazon, Netflix, and Google. The FANG companies have fallen by 17 percent in value and seem to be falling further in the rest of the year. This phenomenon was unexpected, especially after the four tech giants had risen in profile and their stock value was up by 83 percent in the previous year.
China and oil futures
Also, Alphabet, Google’s holding company was declared as the largest conglomerate in the world, overtaking long time number one company ‘Apple’. Experts suggest that the current stance of the Chinese economic crisis and the plummeting oil future market are one of the main drivers of the market slowdown and the tech market slowdown too. Just after Alphabet added an estimated 10 billion dollars over its 73 billion dollar cash reserve, the situation has suddenly turned precarious for the new top conglomerate. Twitter shares have fallen by 40 percent and could fall further after they announce their quarterly result, experts say.