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Weekly Comic: Apple, Tesla Slide Spark Fears Over Tech Bubble

Published 09/05/2020, 07:32 AM
Updated 09/06/2020, 08:08 AM

By Jesse Cohen

Investing.com - Stocks on Wall Street closed lower for the second straight session on Friday as another steep decline in Big Tech shares dragged down the market.

The Nasdaq Composite fell 1.3% to 11,313.13. The tech-heavy index was down by as much as 4.6% at its lows of the day. Friday’s downbeat performance came one day after the Nasdaq suffered its worst one-day drop since March.

The S&P 500 declined 0.8% to 3,426.96, after being down as much as 3.1% earlier in the session.

The Dow Jones Industrial Average meanwhile closed 159 points lower, or 0.6%, at 28,133.31. At one point, the 30-stock index fell as much as 628 points, or 2.2%.

For the week, the Nasdaq and S&P 500 both snapped their respective five-week winning streaks, falling 3.3% and 2.3%, while the Dow lost 1.8%.

Shares of major tech companies retreated sharply this week, with Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) leading losses. Apple is now 12% away from its all-time high reached earlier in the week, while Tesla is almost 17% below its record peak.

Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Nvidia (NASDAQ:NVDA), known as the ‘FATMAN’ group of stocks, are also trading well below their recent highs, sparking fears over the tech bubble.

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To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Latest comments

fake
how far can you go with fake data, fake money .
Wall street will eat all your pure call option traders’ profit from March to September. They will stop until you have margin call and force to sell at your loss.
No tech bubble. Tech is reality!
You should read about the DotCom crash
After the split. Tesla's shares at 15X earnings should sell for $4.50. Keep that in mind.
Most investors buy for future potential. Not a measure of an established one.
buy put options, lots of them
Tesla stole design from Fisker's Karma. Models S is based on a Nissan Maxima body, Model 3 on Mazda 3 body.
and Apple was stolen from Chinese patent.
No wonder these days MIZUHO Increase the price of individual stock.
James PriggGood moves man, just make sure your plan is solid and be aware of riskes involved; use proper risk management. So that you're not hedging now just to aqcuire losses later on, but as you said 35-40% bailout limit so you have a plan... great.I believe you are a long term trader base on your current stated above actions. There will be continuous inflation, i.e from central and governing bodies. Also Traders and investors will put their moneys in what they believe will generate revenue and move money to higher yielding assets.This economic crisis should encourage diversification of portfolio. Opportunities are always there in various markets, the question is - can you spot them? ...no... maybe... solution: read about macro and micro economics - very good start.
All stock which “Nasdaq Whale” Long ( Put option) should giing down. Apple was not on Mayo’s list:)
how can the markets keep increasing? this is just a profit booking event. Simple.
Japan seized the moment, and basically reconfirmed the uptrend with the bounce we saw yesterday. I had heavy stock holding in tech, and I still do. I went from 30% down to 25% down after yesterdays trading. If tech continues plunging on Tuesday my max drawdown from looking at the charts will be around 35-40% by the end. I plan to hold through it and remove any margin shorterm trades, pick-up either new trades on breakouts after the bounce is confirmed or load up on cheap tech giants at the real bottom. Either way this move while signifigant, does not appear to me to spell disaster.
Has anyone ever tried this?: Intraday trades on a mean reversion strategy to recoup losses to 0, converting the new trade price to the new low in order to continue holding a stock through rough patches? I have been doing this and managing to lower my Average trade price to places wher I wished I had bought these stocks. I plan to systematically do this with all my trades. Just a thought.I made a couple grand on Workday, lost on the dip and now own it with the same profit I had at the high, and now own it $226 again, up my original profit again.
James please give an example in order to better understand your strategy....it seems interesting
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