Apple, Microsoft, Amazon and Alphabet lose $2.5 trillion in cap value

The four largest companies on Wall Street (Apple, Microsoft, Amazon and Alphabet) have had a 2022 to forget, as they accumulate a loss in market capitalization of 2.5 billion dollars.

Microsoft leads the decline with $767 billion, Alphabet follows with $674 billion, while Amazon and Apple lose $637 billion and $410 billion, respectively.

Carlos Hermosillo, an independent stock analyst, commented that the reason why these companies have been severely affected is that the outlook for the technology sector has changed.

“Results cease to be spectacular without an additional boost from pandemic conditions, and we see fund managers migrating to ‘traditional’ old economy names and strong balance sheets, seeking value in cheap companies,” he said. the analyst.

The four companies are each worth more than 1 trillion dollars on the stock market: Apple has a capitalization of 2.5 trillion dollars (td); Microsoft, of 1.7 trillion dollars; Alphabet, of 1.2, and Amazon, of 1.05 billion dollars.

Recently, these four companies published their results for the third quarter of 2022, which reflected pressures on profitability, as well as a significant increase in costs.

Alphabet’s net profit fell 26.54% compared to 2021 (for a total of 13,910 million dollars), while in the case of Microsoft, the profit fell 14.38%, to settle at 17,556 million dollars.

Amazon reported this Thursday a 9% drop in its profits, to settle at 2,872 million dollars.

Apple was the only one that increased its profits in the July-September quarter by 0.83%, to reach 20,721 million dollars.

We saw weak reports (in the sector), with important challenges, beyond inflationary pressures and the costs that they could be bringing. They are also companies that, due to their size, find it difficult to continue growing significantly,” said Brian Rodríguez, stock market analyst at Monex Casa de Bolsa.

Shares of all companies except Apple lost on the stock market, as investors reacted to poor financial results.

“In response to the unfavorable results of these companies, their share prices have fallen,” said Kevin Ortiz, an independent stock analyst.

No stabilization in sight

The analysts consulted agreed that the outlook for the four companies is uncertain, since it is not in sight when they can stabilize in the stock market.

“It seems difficult to guess when they will stabilize, which is what I would expect in a few days or maybe a couple of weeks when they “find a floor,” Hermosillo said.

Brian Rodríguez mentioned that significant volatility is expected in the coming days, as there will be an adjustment in reaction to the quarterly results, as well as the cut that the large brokerages will make in the coming days of target prices.

“You could see an increase in the volatility of the stock markets in general due to the next monetary policy decision by the United States Federal Reserve, which will take place on November 2,” concluded Kevin Ortiz.