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