America's Five Biggest Tech Stocks Lost $97 Billion Friday (yahoo.com)

An anonymous reader quotes CNBC: The so-called "big five" -- Apple , Alphabet Class A shares, Microsoft , Facebook and Amazon -- lost more than $97.5 billion in market value between the close on Thursday and the close on Friday, according to FactSet, dragging the Nasdaq to its worst week of the year. Shares of Apple fell nearly 4 percent on Friday, while the other four companies fell more than 3 percent. For most of the day, only 3 stocks in the S&P 500 tech sector were in the green: IBM , Teradata and Western Union . Apple, Facebook, Amazon, Netflix, and Alphabet all traded more than 2 times their 30-day average volume... "They're just plain overbought," said David Bahnsen founder, managing director and chief investment officer of The Bahnsen Group, a private wealth management firm. "They are extremely stretched from a valuation standpoint."
CNN notes the drop occurred "after a Goldman Sachs analyst questioned this year's run-up in the industry's five biggest names." They also added that "The top five techs today account for 13% of the market value weighting in the S&P 500, even though they are only 1% of the companies in the index."

Comments

Re:This is just the beginning

[ShanghaiBill]

Comparing stock valuations to an artificially-depressed and manipulated interest rate

Right ... there is a vast conspiracy of the rich to push down interest rates so poor people make less money on their vast bond holdings. Whatever.

Interest rates are low because inflation is low, and higher interest rates would push us into ruinous deflation. There would be nothing "natural" about that.

Re:This is just the beginning

[taiwanjohn]

After nearly a decade of QE, and with prime interest rate next to zero, there's a lot of "hot money" floating around in search of "investment" opportunities. International corporations have a couple trillion (collectively) parked in off-shore tax havens -- against which they can borrow at borrow at rock-bottom rates, and then use that money to buy-back their own stock and pad the already obscene bonuses of their fat-cat CEOs.

This is just another bubble, pumped up by the shameless, libertine excess of the FED's printing press. Look for more "volatility" like this in the future as the bubble nears its bursting point.