Technology companies declines 📉🖥️

• Microsoft loses 1%
• Google down by over 1%
• Meta also depreciates by about 1%
• Amazon loses over 1%
• Oracle slides another 4%
• Logitech shares down by about 5%
• Dell also loses 2%

At the beginning of the week, Oracle published its results, which greatly disappointed investors. The company's declines amounted to 15%, a consequence of disappointing revenues and forecasts, as well as growth in sales in key sectors observed by the market. This was the first publication of results indicating that the AI revolution is losing momentum.

Yesterday, Broadcom joined the ranks of disappointing companies. Despite the company beating expectations for both revenues and profits, it has already lost 10% of its valuation since the results. This is the result of clear communication from the management that the growth in sales related to AI and data centers will not be as large as the market expects.
Adding fuel to the fire are macroeconomic readings, especially from the USA. Rising unemployment, falling orders, and sales. All this is in the background of raised concerns about whether the liquidity of banks and the private credit market is sufficient at this level of interest rates.

Donald Trump also signed an act today prohibiting state regulations on AI, so they do not slow down the expansion of technology companies. The question arises whether this is "just" poorly thought-out deregulation of a nascent industry and a violation of local autonomy—or perhaps the market sees it as an act of desperation to support the valuations of technology companies, which are finding it increasingly difficult to justify record investments?

US100 (D1)

Source: xStation5