(Bloomberg)-Tesla Inc. fell 4.6% on Friday’s pre-market trading, and recorded a fourth consecutive defeat after pandemic fear peaked in mid-March.
The continued defeat of the electric vehicle manufacturer came as US tech stocks fell for the second day. With Thursday’s plunge, the Nasdaq 100 Stock Index fell 5.2%, the biggest drop since March 16th. This led to a loss of about $730 billion in the high benchmark, up 78% from the March low before Thursday’s decline.
This index rose from 11 of the 13 previous sessions to a new record almost daily. Tesla added nearly 500% this year by Monday’s deadline.
On Friday, Apple Inc. fell 2.9% pre-market, Amazon.com Inc. fell 1.3%, Microsoft Corp. fell 1.1%, Alphabet Inc. fell 1%, Facebook Inc. fell 1.9%, and Netflix Inc. fell 1.8% Fell.
Weed Bush analyst Daniel Ives said the tech stock could still run 20 to 25 percent more. All weaknesses are “a secular growth story in the name of FAANG, loyal to cloud, cybersecurity and technology,” he said, especially as an opportunity to buy Apple and Microsoft.
Thursday’s “bulk sale will cause some white knuckle on the streets as fears of technology bubbles and valuation expansion concerns become a hot topic in the city, but we will continue to see the worldly technology sector as the Covid background accelerates growth. I don’t believe the growth theme is unprecedented. In some cases, it’s a story of a year or two,” Ives wrote in a note.
Not everyone is optimistic. According to Phillip Toews, chief executive of Toews Corp, an asset manager, momentum drives momentum. If tech stocks fall south, “it’s like the beginning of the end of the whole market,” he said.
When the market enters a free fall, Toews said over the phone, it could potentially affect all sectors.
“Even if it doesn’t make sense, everything can fall together,” he said. “It can turn into a panic.”
(Stock update, portfolio manager’s quote added)
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