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The market capitalization of some of America's largest tech companies has slumped more than $3.2 trillion this year following another dramatic week as investors punished disappointing results and forecasts.

"GAMMA" stocks — Google, Apple, Microsoft, Meta, and Apple — posted collective plunges of more than $300 billion in their market value this week as quarterly results revealed mixed fortunes.

Amazon's value dipped by $170 billion this week after a steep downgrade to its outlook for holiday sales, signaling that consumers are starting to tighten their belts.

Meanwhile, Google's parent company Alphabet is worth $80 billion less than it was on Monday as it surprised investors with a slowdown in digital advertising – another ominous cloud that a recession looms on the horizon.

Microsoft, meanwhile, posted its slowest revenue growth in five years on slowing computer sales. 

Major tech stocks battled against increasing inflation at the start of the year, which hurt investor confidence about their ability to pass on soaring costs to customers.

The Federal Reserve's hawkish response, having raised rates by another 0.75% last month in a bid to combat inflation, is weighing on confidence. 

Nevertheless, analysts say the tech giants remain good investments. 

"Longer-term, Amazon should benefit from steady margin expansion driven by the continued growth of its cloud and ads businesses," Wedbush analyst Michael Pachter wrote in a research note. Its stock has dropped almost 40% this year.

On the other end of the spectrum, Zuckerberg's net worth had declined by $81 billion since Facebook rebranded to Meta, with the company continuing to pile money into the loss-making Reality Labs. At the same time, its profitable social media arms is losing users.

"The Facebook owner is battling a downturn in business confidence which is showing up in lower ad revenues and the Pied Piper tunes of TikTok, which are luring potential younger customers away in their millions," wrote Susannah Streeter at Hargreaves Lansdown