Shares of some of the world’s largest tech companies, including Facebook (FB - Free Report) , Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) , are in the red today as investors continue to adjust for Donald Trump’s upset victory in the presidential election.
The prevailing concern surrounding tech companies under a Trump presidency is the potential changes to manufacturing and distribution that the Donald would make. For example, Trump has voiced his desire for Apple to build its products in the United States, as opposed to its current operations in China and other places abroad.
Shares of the Cupertino-based tech giant slid nearly 3% in morning trading Thursday, and the stock is now down about 4% since Tuesday afternoon. Apple CEO Tim Cook was forced to send out an internal memo in the wake of the election results, reassuring employees that Apple’s “North Star” hasn’t changed and suggesting that they all move forward together.
Microsoft stock also fell Thursday, with shares falling about 2.6% in morning trading. The company responded to the election results in two public ways, including a post from CEO Satya Nadella on newly-acquired LinkedIn (LNKD) that congratulated President-elect Trump and asserted that Microsoft’s goals have not changed.
While Nadella remained primarily non-partisan, the CEO did link to a blog post from the company’s chief legal head Brad Smith. It was here that the sense of Microsoft’s paranoia about the future of tech became apparent; Smith made it clear that the company was ready to stand up to the government to advocate for “clearer and more modern” laws.
The brutal performance of tech stocks was spread pretty evenly throughout the entire industry on Thursday. Facebook and Alphabet both slipped about 4.2% in morning trading, while Amazon fell nearly 5%, and Netflix (NFLX - Free Report) and Salesforce (CRM - Free Report) were down about 4.9% and 3%, respectively.
Overall, the market’s reaction to the election results seems to assume a quick adoption of the policies Trump ran on. Money is pouring out of technology and renewable energy and back into traditional energy sources and American industry.
Only time will tell what President Trump actually does, and his specific policy initiatives remain relatively unclear. For now, investors seem to be trading based on his rhetoric, which may or may not manifest itself in actual changes. The market just can’t tell for sure what it’s getting right now.
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