Recently tech has been in focus and this held true last week as well. It resulted in the NASDAQ lagging the rest of the major averages, but what does it mean going forward?
Two weeks ago, the focus was squarely on the shoulders of Facebook (-7.20% in the last 2 weeks) with a member data breach being announced. Their stock took a hefty hit as a result, but the majority of tech stocks appeared to be stable through the storm… Until Twitter (-17.07% in the last 2 weeks) began to emerge as another social media company where member data may be at risk.
This week, more tech companies came under fire. Stock in Tesla (-12.51% on the week) and Nvidia (-5.27% on the week) suffered as a result of recent self-driving fatalities. Amazon (-6.97% on the week), to cap off the tech route, has drawn the focus of President Trump through Twitter. A controversy over shipping costs and tax collection for third party vendors has been the focus as of late and has cost their stock price in the short-term.
In conclusion, when you look at all the focus tech has had on it in the last several weeks, data breaches will be resolved, self-driving technology will slow it’s way to the market, but in a safer manner, and Amazon should be able to handle their situation, even if it comes at an increased expense. That expense should amount to a 10% increase in shipping costs. While meaningful, it is manageable. Also, this is assuming they would feel the full brunt of the amount President Trump is asserting.
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