Nervous Investors Continue Sell-Off: Apple, Google, Facebook, Twitter All Tumble

Technology helped pull the major indexes lower today and may do the same tomorrow.

Jan 27, 2014 at 9:00PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

After last week's report from China that the country's manufacturing industry was slowing, investors sent the major indexes lower for the fifth consecutive day today. The Dow Jones Industrial Average (DJINDICES:^DJI) lost 41 points, or 0.26%, while the S&P 500 fell 0.49%. But of the three major indexes, the Nasdaq lost the most, down 1.08%. Since the technology-heavy index was by far the worst performer, let's look at which companies helped pull it lower.

Shares of Google (NASDAQ:GOOGL) dropped 2.01% during the regular trading session and then another 0.38% in after-hours trading. The move comes on the heels of Google's announcement that it's paying $400 million to buy Deep Mind, a European company developing artificial intelligence. This is Google's largest European purchase, and it comes as Google has been eating up robotic companies. Investors may be showing concern that Google is steering away from its core business of advertising, which could lead to lower profits and a weaker company. I don't think these moves will hurt Google in the long term, but they do make me wonder where the company is heading.  

Meanwhile, Facebook (NASDAQ:FB) tumbled 1.65% during the trading day and another 0.84% after hours. Facebook will turn 10 years old on Feb. 4, and some investors are concerned that the company is no longer the "hot" thing in social media, as reports indicate that younger users are turning to other platforms. On the other hand, Twitter dropped 6.2% during the regular trading session and LinkedIn fell 5.6% today, so the overall sector decline may mean social-media stocks have a larger problem on its hands than just defecting teenagers. As for Facebook, its earnings release is scheduled for Jan. 29.

Finally, although Apple (NASDAQ:AAPL) closed the day up 0.81% and technically helped the Nasdaq today, shares ended the extended trading session down 7.98%, or $43.00. The company reported better-than-expected revenue and earnings per share after the bell but gave lower-than-expected guidance for the coming quarter. Management believes it will post second-quarter revenue within a range of $42 billion to $44 billion, while analysts were estimating $46 billion. That has investors concerned that growth at the innovative technology company may be slowing. So even though Apple may have not hurt the Nasdaq on Monday, it certainly looks as if it will on Tuesday.

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Fool contributor Matt Thalman owns shares of Apple, Facebook, and Google. The Motley Fool recommends and owns shares of Apple, Facebook, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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