Shares of Apple Inc. and Alphabet Inc. both suffered their biggest weekly declines since the early days of the pandemic this week, as big tech companies continued to come under closer scrutiny from Wall Street.
Apple’s AAPL Stock,
ended down 11.2% for the week, its worst weekly performance since the week ending March 20, 2020, according to Dow Jones Market Data. The stock fell 17.5% during this early pandemic period.
Apple shares have fallen in all five sessions this week.
Actions in parent Google Alphabet GOOG,
fell 10.1% over the week, their worst one-day percentage drop since that same week of March 20, 2020, when they fell 12.03%. The stock’s biggest weekly drop in more than two years came even as Alphabet ended a four-game losing streak on Friday.
While Apple shares have fared better than those of Alphabet and other Big Tech peers, the company faces potential pandemic-related challenges due to further COVID-19 setbacks at the main factory. from the manufacturer Foxconn. Additionally, the realities of the current economic climate may be catching up with Apple, as Bloomberg News reported Thursday that the company has suspended hiring in several areas unrelated to research and development.
See more: Apple Reportedly Suspended Hiring for Many Roles, Joining Amazon in Belt-Tightening
While there don’t appear to have been any major developments related to Alphabet specifically over the past week, investors are putting more pressure on big internet companies, according to Bernstein analyst Mark Shmulik. He recently conducted a Big Tech “autopsy” of the results of Alphabet, Amazon.com Inc. AMZN,
and Meta Platforms Inc. META,
concluding that “perfection is required from here” for the three tech giants since Wall Street has less patience for poor performance in one of their many areas of activity.
Read: Amazon closes below $1 trillion valuation for the first time since 2020
All three names suffered negative stock market reactions following their latest earnings reports, which indicated challenges in the advertising market due to economic pressures. At Alphabet in particular, “search was more or less in line with the buy-side bogey and the pace of the cloud, but disappointing results from YouTube combined with shrinking margins resulted in an after-hours drop of around 10%. office,” Shmulik wrote.
Alphabet’s stock is down 40% so far in 2022, while Apple’s is down 22% over the same period. The S&P 500 SPX,
is down 21% on the year while the Dow Jones Industrial Average DJIA,
is down 11%.