We just published the list of the 10 Best Tech Stocks for the Next 5 Years and Micron Technology (MU) ranked 8th on this list.
Big Tech just had a week investors will remember. At its low on Friday, Alphabet had lost $477 billion in market value for the week, its worst week ever and the second-biggest weekly wipeout for any US-listed stock by Yahoo Finance’s calculations, Yahoo Finance reported on October 30.
Most of the damage came Thursday, when the Google parent lost $475 billion in a single session after its third-quarter results. For October as a whole, Yahoo Finance calculated a loss of about $766 billion at Friday’s low. That is the second-biggest monthly loss ever for a US-listed company, behind only SpaceX’s roughly $822 billion drop in July.
Photo by Arturo Añez on Unsplash
Heavy Losses Spread Beyond Alphabet
Alphabet wasn’t alone. SpaceX, Intel and Nvidia each lost more than $100 billion in market value this week, according to Yahoo Finance. Intel fell as much as 30% on Friday after a weak outlook, its steepest drop in decades, and Amazon shed about $70 billion after reporting results Thursday. Software stocks took some of the sharpest hits in percentage terms, with ServiceNow and Fortinet down roughly 25% to 33%.
Nvidia was among the biggest losers. Our analysis of whether Nvidia can sustain its exceptional margins as it becomes more than a chipmaker looks at what keeps its profits so high.
UBS Argues Against Heading for the Exits
Not all the money left the market. Eli Lilly, Tesla and SK Hynix added about $370 billion in combined value over the same stretch, even as the Magnificent Seven stumbled, Yahoo Finance said.
UBS’s chief investment office argued against retreating. Ulrike Hoffmann-Burchardi, the bank’s CIO Americas and global head of equities, wrote on Friday that further volatility does not make leaving markets an effective way to protect a portfolio from drawdowns. She said UBS still sees scope for equity gains overall and believes investors should focus on “building a resilient portfolio that includes exposure beyond tech.”
The selloff also left Alphabet’s price-to-earnings ratio at its lowest in more than a decade, Yahoo Finance noted. You might also be interested in reading our piece on why Alphabet’s low P/E is misleading even as the AI opportunity looks real.
Micron makes the memory chips that AI servers, phones and PCs rely on, including the high-bandwidth memory that sits beside AI processors. The case for the stock is that AI demand has multiplied its sales and its profit on each dollar of them.
