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 was the most affected out of the 5 biggest tech companies. 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.