Why Facebook leaves the tech heavyweights cold

Dusseldorf Falling earnings and a weaker outlook sent Meta (formerly Facebook) stock down 24 percent on Thursday. This was the first technology heavyweight this year. But it is striking that investors did not sell technology stocks in panic despite the bad news.

Apple and Alphabet remained stable, Microsoft lost almost one percent. Only Amazon lost more in value at six percent. This expressed nervousness in the run-up to the forthcoming quarterly figures.

Investors are still rewarding the continued strong business of many tech heavyweights. On the other hand, the grace period for corporations whose prices have risen sharply for years but which do not live up to investors’ expectations is over. A drop in earnings of almost four percent, as analysts are now forecasting for Meta’s full year, does not fit with a price jump of almost 700 percent since the company’s IPO in May 2012.

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