Big Tech stocks are treading water after $1 trillion sell-off week
Big Tech stocks were treading water in premarket trading on Monday after a difficult week that wiped out more than $1 trillion from market values.
As of 06:12 ET, Seer increased by 1.5% and Microsoft It increased by 0.8%. Meta decreased by 0.3% and Amazon It decreased by 0.1%. Alphabet fell 0.6% and Nvidia It fell around 1 percent after recovering 7.9 percent on Friday.
The market grew on edge last week as spending outlooks continued to cap Big Tech earnings last week as companies doubled down on their AI bets.
Amazon, Alphabet, Microsoft and Meta reported a combined capital expenditure of nearly $120 billion in the fourth quarter alone. The figure can hit 660 billion dollars The Financial Times reported that by 2026, this figure will be higher than the gross domestic product of countries such as the United Arab Emirates, Singapore and Israel.
Cloud companies’ growing margins come with “potential equity volatility” amid macro volatility, Bank of America Securities research analyst Justin Post said in a note Monday.
“But management teams appear confident in their ability to forecast demand and this capacity will be fully utilized in 2026,” he added.
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