Tech Stocks Suffer on Wall Street
Technology stocks were “hammered especially hard” during Wall Street’s latest bout of volatility, said Kevin Kelleher in Time.com. In the sell-off that culminated in Monday’s market rout, Microsoft, Apple, Facebook, Yahoo, and Twitter all suffered bigger declines than the overall S&P 500 index, even though “none of these companies announced any grim development” that might have triggered investor panic. Share prices have rebounded somewhat this week, but worries remain, largely because “big tech had been seen as a safe haven amid the global turmoil.” The rough ride suggests the end could be near for tech’s bull market.
Paradoxically, a downturn may be just what Silicon Valley needs, said Farhad Manjoo in The New York Times. There’s a growing sense among tech investors that “the boom has made Silicon Valley soft.” Today’s startups are spending too much, investors are piling money into too many half-baked concepts, and CEOs haven’t been forced to make hard choices. It’s also well known that some of the Valley’s most successful companies, including Google and Facebook, were born in leaner times. “When winter comes to Silicon Valley, we’ll find out which founders really shine.”
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