Since the 2008 financial crisis, shares of Amazon and Alphabet have dropped the most.
The internet giants both reported weaker-than- expected quarterly results this week, hurt by a combination of macroeconomic factors, the war in Ukraine and tough comparisons to the pandemic.
In April, Amazon's biggest decline since November 2008, it plummeted 23.8%, the same month that Google plummeted. In April, it had its worst month since that time.
Concerns about rising inflation and higher interest rates have caused investors to pull out of tech. Russia's invasion of Ukraine in February, the spike in fuel prices that followed and an ongoing labor shortage have started to hit companies' bottom lines.
The last time Amazon and Google saw this sort of selloff was during the financial crisis of 2008, when borrowers were defaulting on home loans at record rates and many of the top financial institutions were failing. Lehman Brothers collapsed in September of 2008.
Tech stocks were crushed. The index fell in November after a slump in October.
The Big Tech class has been mixed so far this earnings season. Facebook reported a better-than- expected profit, though it missed on revenue, and told investors that sales in the second quarter could decline from a year earlier. Apple beat expectations, but spooked investors after warning that sales in the current quarter could take a hit from supply constraints.
Amazon gave weak guidance for the current quarter and growth rates slowed to their lowest since the dot-com bust. Earlier in the week, Google missed on sales and profit, and reported a huge miss in its YouTube segment, where revenue grew just 14%.
Both stocks have suffered so far this year, but their trajectory changed in 2021. The best-performing Big Tech stock of the year was Alphabet. The worst of the pack was Amazon.
There is not a lot of confidence in tech stocks right now.