The internet giant’ s spending strategy spreads competition concern
Facebook, Amazon planned to report results later recently
A bad earnings season for that tech industry just got even worse with Google’ s parent becoming a member of the ranks of stocks tumbling after results.
Shares of Buchstabenfolge Inc. slumped almost 5 percent since 1: 10 p. m. within New York after first-quarter results started concern that the internet company is certainly embarking on a new spending binge maintain with its biggest rivals. Other technology giants fell in tandem, using the FANG complex that also contains Facebook, Amazon and Netflix viewing almost $85 billion in their market value wiped out.
The downturn was a fresh blow to traders who had hoped earnings might serve as an antidote to problems that global trade disputes as well as the threat of government regulation might upend growth. So far, the latest profits season has done little to confirm bulls’ faith, with tech stocks and shares falling an average 2 . 2 % in first-day reactions.
The trend bodes poorly for Facebook and Amazon . com when they report in the next two days. If the pattern continue, it’ ll worsen pain for investors who put money into the industry just as the biggest companies began faltering.
Fund managers have elevated their exposure to tech stocks over any other industry over the past month, based on a survey by Evercore ISI released on Tuesday. The bullish bets proved ill-timed as the team trailed all but one of the 11 areas in the S& P 500 within the stretch.