Meta's huge share price drop shakes world tech stocks

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Shares in Facebook owner Meta fell 20% in US premarket trade today after the social media giant issued a dismal forecast, blaming Apple's privacy changes and increased competition.

The huge drop, which comes before Amazon earnings later in the day, spilled over to Europe, where technology stocks posted some of the steepest declines and soured the mood across global financial markets in another busy day of central bank meetings.

Big U.S. tech companies have come under mounting pressure in 2022 as investors expect policy tightening at the U.S. Federal Reserve to erode the industry's rich valuations following years of ultra-low interest rates. The tech-dominated Nasdaq .NDX fell more than 8% in January, its worst monthly drop since the end of 2019.

European technology heavyweights ASML, Infineon and SAP were among the shares weighing the most on the region's STOXX 600 equity benchmark, in what traders viewed as a kneejerk reaction to the Facebook tumble. Infineon was also penalised by a conservative outlook. The disappointment over Meta's earnings and the subsequent stock fall raised memories of the bursting tech bubble in 2000.

 

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