The fall of Nasdaq reflects the fear of a possible technological ceiling

(Bloomberg) – There are two companies in US business history worth $ 1 trillion. The first was Apple Inc., which on August 2 exceeded the thirteen-digit threshold. He stayed there for exactly three months before closing negotiations on November 2 at $ 986.6 billion. Another was Inc., who spent a part of one day at the beginning of September as a $ 1 billion company.

The mile served as a reminder of how much technology industry came to dominate the economy and concluded a remarkable decade of years that marked the beginning of radical changes in US firms and society. However, the recent decline of Silicon Valley makes it possible for industry to peak. Apple lost about 20 percent of its market value since its peak; Amazon dropped 26 percent. Apple stocks only lost 4% of their value on Monday only (Amazons fell 5%). Wall Street also punished other giants of the US technology industry this year: Alphabet Inc. lost its top 20 percent, Facebook twice, and Microsoft Corp shares. fell 10 percent. percent.

It's not just a peculiarity of market dynamics. The growth of the largest technology companies is slowing down. When Apple announced its quarterly performance this month, it said it would no longer publish the number of iPhones sold, which is an undeniable signal that it plans to sell less of them. Amazon's Internet retail business slowed down four consecutive quarters and warned investors in October that it would experience a relatively modest holiday season. Rost's Prime membership stagnated. Facebook's main social network has slowed down considerably and has become increasingly reliant on other services it has for its growth, such as Instagram. Brian Wieser, senior research analyst at the Pivotal Research Group, said this month that Facebook and Google were approaching the saturation point. The overall share of Americans using the Internet and social networks has stopped growing two years ago, says the Pew Research Center.

Now is a good time to pause and realize that predicting an unresolved economic crisis in the technology sector is a huge way of making mistakes in recent years. In 2012, smart people warned that Facebook would be affected by its inability to adapt to smartphones, and stressed that Apple's growth would meet certain basic limits of the economy. In this year, journalists, entrepreneurs and economists debated whether industry is in a bubble, and then continued in 2013, 2014, 2015, 2016 and 2017.

Large technology companies continue to be a phenomenal success with any tangible standard, says Crawford del Prete, director of IDC research firm operations. There simply were not many companies with such a big impact as Apple, Amazon or Google, Alphabet. It has always been inevitable that revenue growth in companies of this size will slow down. "At the heart of all this is that people need to control their stupid expectations," said Del Prete.

The original note: The Nasdaq Rout reflects the growing concern that the tip is near

Reporter in the original story: Joshua Brustein in New York, [email protected]

Editor responsible for the original note: Emily Biuso, [email protected]

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