Big tech lost more than $1 trillion in value in the last three trading days of market rout

The elite trillion-dollar big tech club known as MAMATA used to be worth a combined market value of $10 trillion. But that changed this week after the turmoil in the stock market caused the tech giants to lose over $1 trillion of their value in just three trading days as the market rout continues.

Apple, the world’s most valuable public company, suffered the most loss shedding at least $220 billion in value since the close of trading last week Wednesday. The carnage didn’t stop there. Amazon, Alphabet (Google parent company), Microsoft, and Tesla, also saw their stock tumble to an all-time low.

It all started last week when the Federal Reserve raised short-term interest rates by 0.50% Wednesday, as part of a broader effort to slow down the inflationary pressures.

When the dust settled on Monday, the tech giants lost a combined over $1 trillion in market value. Below are the six biggest tech losers over the last three trading days:

• Amazon’s market capitalization has declined by $173 billion.
• Alphabet, Google’s parent company, is worth $123 billion less than it was last week.
• Facebook parent Meta Platforms has lost $70 billion in value.
• Microsoft lost around $189 billion in value.
• Tesla also lost $199 billion, months after seeing its valuation fall below $1 trillion.
• Graphics card maker Nvidia’s loss stands at $85 billion.

But why are tech stocks crashing? Some analysts pointed to other geo-economic challenges and the ongoing war between Russia and Ukraine.

For example, the sanctions on Russia have led to the rise in the price of energy which ripples across the entire supply chain and the prices of everything we buy. That also caused people to start tightening their wallets. Others also said that the lockdowns in China are causing disruption in chip production which in turn affect companies like Apple and Tesla.