Tech stocks plunge for second day in a row

For the second day in a row, the shares of large tech companies are plunging into the U.S. stock market. Two hours after opening, Apple, Facebook, Google and Amazon are all around 4 or 5 percent in the minus.

The red figures come after months of hard growth. Apple, for example, recently broke the $2,000 billion mark two years after going through the $1,000 billion mark.

According to stock market analyst Cornรฉ van Zeijl, it is not possible to say exactly what is causing this decline. He does point to a number of possible factors. For example, there is extreme speculation, he says: “Then shares are bought in the hope that they will rise quickly. When that big speculation stops, those shares get the hardest hit.”

Safe stocks

Van Zeijl also points to reports that the American economy is recovering. Equities of tech companies were seen as ‘safe’ in recent months, because despite the crisis, the companies were doing very well. Investors may be stepping back into oil or banks. Furthermore, he points to the large number of private investors that have recently bought shares.

At the same time, the companies whose shares are now going down are generally very healthy. Falling share prices may wash away billions of dollars in value, but the turnover of these companies is still high. “A sharp fall in share prices makes no difference to the companies, it is especially annoying for investors,” says Van Zeijl.