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Why Amazon, Facebook, and Salesforce Stocks Fell Today

By Joe Tenebruso – Updated Sep 4, 2020 at 6:43PM

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The tech titans have lost roughly $200 billion in combined market value in a matter of days.

What happened

Technology stocks' September swoon continued on Friday. By the close of trading, shares of Amazon (AMZN -0.12%), Facebook (META -0.93%), and Salesforce.com (CRM 0.32%) were down 2.2%, 2.9%, and 3.9%, respectively, after falling as much as 8% earlier in the day.

So what

Large-cap tech stocks have been some of the biggest winners of 2020. As COVID-19 has laid waste to huge swaths of the economy, investors have sought shelter from the storm. They found it in companies like Amazon, Facebook, and Salesforce, which have benefited as the coronavirus pandemic has driven retail sales, advertising, and business processes to the cloud at an unprecedented rate.

A person is pointing to a stock chart that rises sharply then falls.

Investors have sold off many tech stocks in recent days. mage source: Getty Images.

However, as their share prices have surged, some investors have begun to question whether they've come too far, too fast. Many have chosen to sell in recent days, sparking a market downturn that has seen Amazon, Facebook, and Salesforce shed approximately $200 billion in combined market value. 

Now what

Their market value losses help to highlight just how massive these tech titans have become, as well as their impact on the market as a whole. But these losses represent less than 10% of their previous combined market value, so they're not as staggering, relatively speaking, as they might at first appear. Moreover, these tech titans' stock prices could certainly decline further if the market continues to pull back in the days and weeks ahead.

However, Amazon, Facebook, and Salesforce remain dominant in their respective industries. That hasn't changed over the past few days. So, if their share prices do decline further, long-term investors may wish to consider picking up some shares of these elite businesses.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Facebook, and Salesforce.com and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Amazon Stock Quote
Amazon
AMZN
$120.95 (-0.12%) $0.14
Salesforce, Inc. Stock Quote
Salesforce, Inc.
CRM
$156.23 (0.32%) $0.50
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
META
$138.98 (-0.93%) $-1.30

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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