Why Did Apple, Amazon, and Nvidia Stocks Fall on Friday?

Why Did Apple, Amazon, and Nvidia Stocks Fall on Friday?

Tech Highlights:

  • Tesla CEO Elon Musk joined the chorus of business leaders sounding the alarm about the economy and the possibility of a recession. In an email to staff, Musk admitted having a “super bad feeling” regarding the economy, leading to a decision to cut 10% of the electric vehicle (EV) maker’s staff, according to a report by Reuters. This came on the heels of a similar dire warning by vocal JPMorgan Chase CEO Jamie Dimon, who said at a recent conference the company is preparing for an economic “hurricane” this year, fueled by surging inflation and the war in Ukraine. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/03/2022.

  • After many days of solid advances for the market, shares of some of the world’s largest technology companies fell on Friday. Nvidia (NVDA -4.45 percent) was down as much as 5.5 percent, iPhone manufacturer Apple (AAPL -3.86 percent) was down as much as 4.5 percent, and e-commerce behemoth Amazon (AMZN -2.52 percent) was down as much as 3.5 percent. While the stocks rebounded marginally as of 2:44 p.m. ET, they were still down 4%, 3.6 percent, and 2.2 percent, respectively, as of 2:44 p.m. ET. New recession concerns pulled a wide swath of equities lower today, but there was also company-specific news for each of the technological heavyweights.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year. These statements weighed on Wall Street Friday, sending the Nasdaq Composite and the S&P 500 down 2.3% and 1.4%, respectively (as of this writing). Yet there were company-specific issues that helped fuel the stock price declines for the tech triad. Morgan Stanley analyst Katy Huberty dug into the latest data provided by Sensor Tower and concluded that Apple’s App Store sales growth decelerated last month, with revenue growth slowing to 4% year over year, down from an estimated 8% growth in April. Huberty said that slowing was broad-based across most regions — except for the U.S. market. Evercore analyst Amit Daryanani had similar concerns, noting the slowdown was “somewhat surprising,” given the expectation for accelerating growth.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon, Apple, Nvidia, and Tesla. The Motley Fool has positions in and recommends Amazon, Apple, Nvidia, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

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