Several tech company prices are plummeting. The biggest loser is Snapchat operator Snap. According to experts, TikTok, Instagram or YouTube could soon follow. Hard drive seller Seagate also delivers bad news.
Disappointing company numbers from the tech sector have dampened sentiment on Wall Street. The Dow Jones index of standard values fell 0.43 percent to 31,899.29 points. The broader S
The numbers reflected the uncertain economic outlook, commented analyst Ali Mogharabi from the research house Morningstar. Also, they could be harbingers of weak results from rivals like TikTok, Instagram or YouTube. The S
"This could be interpreted as a red flag that profitability is under pressure as the economic environment slows," said Lindsey Bell, strategist at Ally Invest. The US short message service Twitter also presented a surprising quarterly loss and blamed the back and forth on Elon Musk's ultimately failed takeover plans and a weakening advertising market. The shares still gained 1.06 percent.
In the chip sector, investors worried about a downturn after hard drive seller Seagate Technology delivered bad news. Shares fell more than 8.11 percent amid production cuts due to weak demand. In the wake of this, the titles of rival Western Digital and memory chip manufacturer Micron fell by more than six percent.
Thanks to increased sales targets, investors took advantage of American Express. The credit card provider's shares rose by more than two percent. The company is targeting growth of 23 to 25 percent instead of 18 to 20 percent thanks to consumers' continued buying mood. "Some of the rising spending can certainly be attributed to inflation," said Michael Ashley Schulman, chief investor at money manager Running Point. Some consumers prefer to make larger purchases as wage increases have lagged inflation.
