Shares of Amazon, Apple and Tesla plunge after Russia invasion

Shares of US tech giants – including Amazon, Apple and Google – were hammered on Thursday as Russia’s brutal invasion of Ukraine shocked global markets.

The tech-heavy Nasdaq Composite Index fell 2.5% – with its losses worse than the market as a whole – when stocks opened on Thursday. Individual tech names fell even further.

Apple shares fell 4% at the open, while Facebook parent company Meta fell 2.0%, Amazon 1.2% and Google 1%.

Industry watchers said the tech was particularly vulnerable to a sharp sell-off in stocks, even though Russia and Ukraine aren’t key markets for the U.S. tech giants. That’s because they’re already trading at such high prices that any small disruption can knock them off their already shaky footings, analysts said.

Amid expectations of higher interest rates, investors had already retreated from risky tech stocks in 2022. The Nasdaq had already fallen around 15% before Thursday this year’s invasion of the Russia officially appearing to tip the index into its first bear market since 2020. .

In an investor note titled “Invasion of Ukraine will cause scary tech selloff,” Wedbush Securities managing director Dan Ives called the invasion a “Black Swan event” causing “significant pain for tech stocks.

Stocks plunged on Thursday as Russia staged a full-scale invasion of Ukraine.
Anadolu Agency via Getty Images

“These are the most oversold tech stocks we’ve seen since 2014/2015, with investors heading for the exits in an accelerated fashion with a potential war in Europe,” Ives said.

Other tech stocks were also beaten on Thursday.

Shares of electric carmaker Tesla fell 4.9%, knocking billions of dollars off Elon Musk’s net worth. Microsoft shares were down 1.5%, while Samsung shares were down 2.1%.

Amazon stock
Amazon shares were down 3% on Thursday morning.
NurPhoto via Getty Images

Investors are fleeing to less risky assets such as US Treasuries and gold, both of which soared on Thursday.

Comments are closed.