Led by Apple, major tech stocks drop $728 billion in 6 weeks

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Big pile of cash underneath an Apple logo.
Apple is still worth a whole lot. Just not as much as it was.
Photo illustration: Ste Smith/Cult of Mac

Apple’s market cap has taken one heck of a beating over the past six weeks. But it’s far from alone.

A new report notes that tech’s FAANG stocks (that’s Facebook, Apple, Amazon, Netflix, and Google) have lost a combined $728 billion of their combined value in one-and-a-half months. That’s slightly more than the GDP of Saudi Arabia and only a bit less than that of the Netherlands.

Of the companies in question, Apple has seen $231.06 billion wiped off its value since October 3, $220.67 billion from Amazon during that same time frame, $138.22 billion from Google, $89.95 billion from Facebook, and $48.11 billion from Netflix.

Apple, as the most valuable company on the list, has lost the most. By my calculations, it has lost more of its market cap in the past six weeks than its accumulated value in its first 30 years as a publicly traded company. It took until September 2010 — after the return of Steve Jobs, the launch of the iMac, iTunes, iPod, iPhone and iPad — for Apple to be valued at over $230 billion.

However, it is Facebook that has suffered the longest losing streak. It is currently on course for its third monthly loss, while Facebook stock on Monday hit its lowest level since early 2017.

The market won’t recover until Apple does

As a number of analysts have pointed out, the tech market has dragged down the rest of the market with it. The S&P 500, DOW 30, and NASDAQ 100 all dropped on Monday. Mad Money host Jim Cramer thinks the market won’t recover until Apple does.

“This market can’t stabilize until Apple stabilizes,” he told CNBC. “My view? Apple is a long-term hold, with its huge installed base giving the company’s service revenue stream a lot of room to grow, which is why you own it [and] don’t trade it,” he said. “However, I can’t blame any big accounts for dumping it and, at least short term, I wouldn’t expect the stock to bottom until some of the analysts start downgrading it.”

Source: Business Insider