Economy

Big Tech lost almost half a trillion dollars in market cap due to coronavirus

Amazon is the only giant that gained value from January 30 to last Tuesday

Facebook launched feature that allows users to see small businesses posts first. Photo: Shutterstock
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  • Facebook’s shares dropped 15% since the WHO declared a public health emergency;
  • Investors believe Amazon may increase online sales while people stay more at home. 

Since January 30, when the World Health Organization declared the coronavirus outbreak a public emergency, the five most valuable tech companies lost nearly $460 billion in value, according to CB Insights. Amazon is the only one in the group that did not see its shares plunge so deeply.

Facebook’s stock has plunged 15% during this period, mainly due to a drop in advertising spending. A slowdown in Chinese manufacturing may be hitting the company’s development of virtual reality headsets. The company also canceled its F8 developer conference in favor of a virtual event.

READ ALSO: Amazon will aid small businesses affected by coronavirus

Apple‘s shares declined 11.9%, as the outbreak hit demand and production in China. The iPhone maker saw a drop of 60% year-over-year in smartphone sales. 

Microsoft‘s stock dropped 6.9% in the last six weeks up to yesterday, while Alphabet, Google‘s parent company, lost 12.4% in market value. The company canceled Google I/O, its annual developers conference that would take place in May.

Amazon gained 1.1% in the same period. The ecommerce giant may actually gain from people increasingly avoiding public places. As more consumers are working and studying at home as a precaution against the coronavirus, Amazon may strengthen its relationship with its online customers.