The markets are absolutely punishing all firms with decelerating growth. Facebook and Apple are two of the standouts. We at Classiarius believe that Facebook is in for a more selling pressure as the management team seems to be lost and it is said that CEO Mark Zuckerberg is becoming more aggressive with his staff. In our view, this is never a good sign as it could mean, as a result of a more aggressive management style, that more senior staff join the exodus, and start to leave in waves. Has Mr Zuckerberg lost control?
Facebook shares are in a free-fall after a WSJ report said that Mr Zuckerbeg is becoming more more aggressive in how he manages the firm. Note that we at Classiarius put out an audiovisual package this week that pointed out the missteps by the senior management team that has resulted in an exodus of top talent, and could turn into a wave of mid-level talent as well, leaving the tech giant. Please see our recent presentation in the video section of Classiarius in which we map out the ills of the company. Some of these ills are not going away any time soon.
Apple shares fell following a report that the company has cut production for its newest iPhones. The tech-heavy Nasdaq Composite fell by 3 percent overnight as it continued a breakdown that has lasted 6 weeks. Facebook, Nvidia and Apple were all sold heavily during the sell-off with Facebook leading the breakdown. According to the Wall Street Journal blamed his second, Sheryl Sandberg for the Cambridge Analytica scandal and damage to the firm after an investigation. Again, there have been several scandals that have rocked the tech giant since 2016.
Again, the top two managers are said to have been slow to react when the scandal broke. Again have a look at our video section, we discuss some key points and possible patterns that now seem to be coming true. Keep in mind that the New York Times detailed last week how Facebook tried to hide the fact that Russia used the platform to disrupt the 2016 US election.
Apple comes next. Apple stock dropped 4 percent as the WSJ reported that the company has cut production of the newest iPhone as demand seems to be fading. The firm`s stock fell back into bear market, now down 20 percent from its high. Apple, like Facebook and Nvidia have come under renewed pressure at the start of this week. Nvidia is down 11 percent, in a breakdown that started last week.
FAANG bear market. Note that the FAANG stocks are down with Facebook leading the way. Facebook down 39.5%, Amazon down 25.4%, Apple down 20.5%, Netflix down 25.6% and Alphabet down 20.3%
This is one of the deepest breakdowns in recent US tech history.