Tech giants stocks plunge amid new tariffs: Apple, Meta, and Microsoft face significant losses
Markets plunge as new tariffs trigger fears, with Dow dropping 1,500 points. Meta holds strong, but Apple struggles amidst trade tensions.
The recent tariff policies implemented by President Trump have significantly impacted the tech market. On Monday, Apple's stock dropped 2.3%, making it the worst performer among the "Magnificent Seven" (Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta, and Tesla). This decline is attributed to concerns about how the new tariffs will affect Apple's global supply chain. Tesla also saw a 1.9% drop, while Microsoft, Meta, Alphabet, Amazon, and Nvidia experienced gains.
Jefferies analysts warn tariffs could reset big tech targets, $5 trillion loss for 'Magnificent Seven' companies
Jefferies analysts have called the new tariffs a "license to reset" the performance targets for big tech companies. The firm reduced earnings estimates and price targets for 29 tech companies, including Meta and Microsoft. Meta saw a 17% cut in its price target, while Microsoft had a 5% decrease. These revisions are partly due to the expectation of a decline in Chinese advertising spending due to the tariffs.
The "Magnificent Seven" have suffered over $5 trillion in market capitalization losses due to global tariffs. Tesla stands out as one of the hardest hit, with a 41% drop so far this year. Experts warn that there are still no clear signs of recovery and mention that valuations for these companies were inflated. Additionally, Apple’s reliance on Asian production adds pressure, especially with a 54% tariff on products from China.
Dow Jones drops 1,500 points amid tariff fears; Meta outperforms while Apple faces losses
On Monday, the Dow Jones Industrial Average fell by 1,500 points (3.9%) due to fears surrounding the new tariffs and potential retaliation from China. The S&P 500 and Nasdaq Composite also experienced significant declines, with tech stocks hit hardest. Analysts are advising caution as the Nasdaq has entered bear market territory, suggesting limiting exposure to tech stocks.
Despite these challenges, Meta Platforms has performed relatively better, with a 3.1% increase in 2025. However, Apple has seen a 12% decrease in the same period. This contrast highlights the different responses from tech companies to the current trade policies and economic challenges.