FT News Briefing Big Tech’s Big Stumble
6 snips
Jul 29, 2024 Big tech stocks are reeling after disappointing earnings, with investors shifting their focus to smaller companies. The Bank of England's interest rate decision looms amid inflation worries. Tensions escalate following a Hezbollah drone attack, raising concerns about Israel's security. The complexities of military defense in northern Israel come into sharp focus as the army grapples with new challenges. It’s a chaotic mix of market volatility and geopolitical strife that's redefining investment strategies.
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Big Tech Sell-Off
- Investors are punishing companies more harshly for missing earnings expectations.
- This sell-off, especially in big tech, may signal overvaluation after a multi-year run.
Tesla vs. Alphabet
- Tesla's disappointing earnings, focused on future tech rather than car sales, triggered a sell-off.
- Alphabet, with solid earnings, also fell, suggesting high expectations across big tech.
Big Tech Valuation
- Big tech stocks are currently expensive compared to historical valuations.
- Investors might be taking profits after substantial gains, seeking opportunities elsewhere.