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
