Several big names in the tech sector such as Amazon, Twitter and Facebook, stocks that were already shaken up over the previous two weeks, were back on the New York Stock Exchange on Monday, weighing on the Nasdaq index.
This index with strong technological coloration lost up to 3% before recovering slightly. In its wake the index of Wall Street, the Dow Jones Industrial Average, declined at the same time by more than 2%.
Much of the tech sector continued to suffer from the scandal surrounding the use of data from 50 million Facebook users by British consulting firm Cambridge Analytica, which worked, among other things, on Donald Donald’s election campaign. Trump in 2016.
“This whole story could involve significant changes in the business model or regulatory oversight of companies living on their users’ data,” says Art Hogan of Wunderlich Securities.
“These developments could affect their profits and investors are recalibrating the valuations granted to these groups,” he adds.
Facebook , which has already lost nearly 14% in the last two weeks, yielded another Monday 3.09%.
Mark Zuckerberg, the boss of the social network, said in an interview that it would probably take “a few years” to solve the problems revealed by the case on the defective protection of personal data of its members.
Alphabet, Google’s parent company , shrank by 3.31%.
The online commerce giant Amazon (-5.59%) suffered in addition to a new salvo of criticism from President Donald Trump, who again denounced Saturday his tax practices and his use of the US Post.
This collapse in “values generally recording a better performance than the rest of the market is clearly what dominates trading on Monday,” said Hogan.
The title of the electric car manufacturer Tesla fell again (-4.90% to 253.02 dollars) while he had to present in the day its production figures for the first quarter. Analysts will particularly monitor those of the latest Model 3 to open the mid-range segment of Tesla, which is currently experiencing manufacturing delays.
The New York place had welcomed last week the sharp rise in US growth but had already suffered the heavy losses of most giants of the technology sector