Microsoft is once again the second-largest company in the United States since Amazon erased $68.1 billion in market capitalisation. The company fell short of Wall Street’s revenue expectations in the third quarter this year.
The stock market experienced its worst day of trading on Friday. The last time stocks fell drastically was on the 24th of October 2014. Amazon’s stock fell 7.8% and has a market cap of $803.28 billion with owner Jeff Bezos lost $11 billion in equity value.
Alphabet, the parent company of Google, also experienced a massive setback with a 1.8% dip on Friday. Some of the world leaders in tech, and the strongest companies has experienced underperformance for the past three months. The ‘FANG’ collective, consisting of Facebook, Amazon, Netflix and Google has renewed a sell-off in the FANG stocks.
Since July of this year, Alphabet, Facebook and Netflix have lost more than 15%. S&P 500 has also lost 6.3% while Amazon lost 9%. The price movement on the 26th of October has pushed Amazon even further away from a $1 trillion market cap, something the company achieved earlier this year. Only one other company has achieved this feat in the past, Apple.
Thanks to the movement in the stock market it provided Microsoft the opportunity to climb up where the tech giant is now ahead of Amazon. Microsoft’s market cap is currently standing at $821.05 billion.
How to React When Stocks Dip
According to experts, the worst thing to do during market slams and dips is to sell your shares. According to expert Warren Buffet, the best approach is to be positive when other traders are afraid of losing everything, and to be extra wary when they are greedy.
If history has taught us one thing it’s that a dip in the markets is a golden opportunity to buy stock. A slam in the market is usually paired with a recovery and growth period. A dip in the market can also be an indication of the beginning of a bear market. What to do then?
The best thing to do is to have a solid understanding of the economy, financial trends and to avoid making investment and selling choices based on your fear or emotions. For you to overcome your fear of losing money, keep your long-term goals in mind and remain calm. Making money from investing in the stock market is possible only when you remain clear-headed.