Shares of technology companies fell as momentum turned against the sector.
The mega-cap tech companies that led the stock market all year have lost significant ground in recent sessions. Amazon.com shares were volatile in late trading after it reported earnings growth ahead of Wall Street expectation, but issued a muted take on holiday-season prospects. Facebook owner Meta Platforms declined after a weak reading of digital-advertising growth.
Apple shares fell ahead of its earnings report, due next week. “For the ‘Magnificent Seven’ or the ‘Elite Eight,’ the load’s getting heavy on their backs,” said JJ Kinahan, chief executive of IG North America and president of its brokerage tastytrade. “You can see with Microsoft having a tough day today after good earnings. There are those that look at the [price-to-earnings] multiple and say ‘it’s already in the sky, it has to come down.'”
The optimism about AI reminded Kinahan of previous crazes with electric-vehicle stocks and others. “People get really excited about a concept, which is great … but at the end of the day the logistics of getting the concept into reality takes a lot longer than people would like,” said Kinahan.
Western Digital shares fell sharply on a report that talks about merging the company’s flash memory business with its joint-venture partner Kioxia have been terminated.
Write to Rob Curran at [email protected]
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