Shares of Amazon and Google parent Alphabet just closed out their worst month since the 2008 financial crisis.
The tech giants both reported weaker-than-expected quarterly results this week amid the war in Ukraine and macroeconomic factors.
Amazon declined 23.8% in April, its biggest plunge since falling 25.4% in November 2008, the same month that Google fell 18.5%. Alphabet had its worst month since that time, slipping 18% in April.
Throughout the start of 2022, investors have been rotating out of tech on fears of rising inflation and interest rates hikes. Russia’s invasion of Ukraine in February, the surge in fuel prices that followed, and a continuous labor shortage have started to negatively impact companies.
The last time Amazon and Google saw this massive selloff was during the global financial crisis. Lehman Brothers collapsed in September 2008, followed by a string of big Wall Street bailouts. The Nasdaq fell 11% in November, following an 18% pliunge in October.
Meanwhile, Facebook reported better-than-expected profit. Apple beat expectations but frightened investors after warning that the current quarter could tumble due to supply constraints.
While both stocks are declining sharply, their trajectories diverged significantly in 2021. Alphabet was the best-performing Big Tech stock of the year, soaring 68%. Amazon was the worst, gaining 2.4%.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” Amazon CEO Andy Jassy said in a statement.
“This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we’re now approaching levels not seen since the months immediately preceding the pandemic in early 2020,” Jassy added.