Facebook Shares Suffer Worst Drop This Year as Tech Losses Mount
(Bloomberg) -- Technology stocks were hammered again on Monday, extending recent declines for some of the world’s most valuable companies, which have been under pressure amid rising bond yields.
The selloff was particularly painful for Facebook Inc. with reports of global outages for users of its social-media apps helping to fuel the biggest drop in nearly a year. The company also is facing questions from a whisteblower who will be testifying before Congress. Its shares finished down 4.9%, the most since Nov. 9.
Three of the biggest U.S. technology companies fell more than the Nasdaq 100 Stock index, which sank 2.2% for its third decline of at least 2% in the past 11 trading days. In addition to Facebook, Amazon.com Inc. dropped 3%, followed by Apple Inc. sliding 2.5%. In addition, Microsoft Corp. lost 2.1% and Alphabet Inc. retreated 2%.
Technology stocks are bearing the brunt of selling amid a spike in Treasury yields, which are used to calculate the present-day value of profits expected to be delivered far into the future. A sudden surge in those yields last week helped send the Nasdaq 100 to its worst weekly loss since February.
With the Nasdaq 100 now looking like it could fall for a fifth consecutive week, damage is beginning to mount for some its largest members. Apple, the world’s most valuable company, on Monday joined Facebook and Amazon.com in correction territory, which is signified by a drop of at least 10% from a peak. The iPhone maker has now fallen 11% from a Sept. 7 record, erasing about $300 billion in market value.
Amazon.com has now lost 15% since a July high and is trading lower than it was at the start of the year. Facebook has declined 15% from its Sept. 7 closing high. Alphabet is down 8% from its record, though it’s still up 53% in 2021.
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