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Google and other FAANG stocks saw $58 billion wiped from their market caps after Trump slammed the 'immense power' of big tech

Sep 25, 2019, 16:01 IST

John Moore/Getty

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  • Trump's speech to the UN on Tuesday cost the world's biggest tech companies billions in value.
  • The FAANGs (Facebook, Amazon, Apple, Netflix and Google's parent Alphabet) lost a combined $58 billion in market cap.
  • In his address, which also mentioned China trade tensions, Trump said that social media platforms are acquiring "immense power," adding that a free society "cannot allow social media giants to silence the voices of the people."
  • Netflix was the biggest loser, dropping 4.4%, as the tech-heavy Nasdaq index fell 1.4%.
  • View Markets Insider's homepage for more stories.

Facebook, Amazon, Netflix and the world's biggest tech companies lost billions in market value on Tuesday, after Trump attacked social media platforms as part of his address to the UN.

Combined, Facebook, Amazon, Apple, Netflix and Google lost $58 billion in market cap, after all the stocks saw losses after the speech. The tech-heavy Nasdaq index dropped 1.4% on the close.

The biggest losers were Netflix, which fell 4.3%. That's stock's decline was exacerbated by a prominent analyst's lowered price target on Tuesday.

Facebook dropped 3% and Amazon dropped 2.5%. Google and Apple also saw losses of 1.3% and 0.5% respectively.

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The same shares are all expected to drop further

In premarket trading on Wednesday, Facebook, Apple and Amazon are falling 0.5%, while Netflix dropped 0.2% and Google 0.4%. Combined, that would wipe upwards of $12 billion off those market caps if those declines continued into the closing bell.

According to a CBS News video of his speech, Trump attacked social media companies, saying that the platforms are "acquiring immense power over what we can see and over what we are allowed to say," adding that "a free society cannot allow social media giants to silence the voices of the people."

"My administration has made clear to social media companies that we will uphold the right of free speech," he said.

"A free society cannot allow social media giants to silence the voices of the people and a free people must never, ever be enlisted in the cause of silencing, coercing, cancelling, or blacklisting their own neighbors."

Adding to bearishness on Netflix, Markets Insider reported on Tuesday that Pivotal Research Group analyst Jeff Wlodarczak - who used to be the biggest Netflix bull on Wall Street - lowered the price target for the streaming giant from $515 to $350.

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