Tech giants stumble as Wall Street fails to recover from nightmare week

US Online Streaming Giant Netflix : Illustration
Netflix's target price was cut around 10 per cent by Raymond James (Source: Getty)

The big five US tech companies dropped over $30bn (£23bn) from their market value yesterday as Wall Street struggled to bounce back from a nightmare week.

Netflix recovered slightly after an initial three per cent drop when the share’s target price was slashed by Raymond James and Goldman Sachs.

Read more: Snap to challenge Netflix in new turn to original scripted content

Raymond James cut the price around 10 per cent to $400 (£304), saying rising interest rates will hit the company’s growth.

Shares in Apple closed down 2 per cent to $217 after Goldman said its earnings might fall due to slowing demand for iPhones in China.

Shares in the FAANGs dropped last week amid a massive sell off.

On Wednesday alone, $172bn was wiped off the market capitalisation of Facebook, Amazon, Apple, Netflix and Google alone.

Raymond James said it is keeping its “outperform” rating for Netflix. It said the company still has “potential for share gains in market and price increases”.

Although large media companies have started pulling shows from Netflix, subscription numbers remain high as customers are drawn to its original content.

Read more: Sky adds Netflix to its streaming platform in bid to lure in more viewers

A financial downturn which reduced money for original programing would hit Netflix, Raymond James said, however competitors would also be impacted. Bad market conditions will therefore likely maintain the status quo.

The streaming service will announce its earnings on Tuesday, after markets close in the US.

Related articles