Mega-cap firm valuations fall amid rising
rates, tech earnings concerns
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[November 01, 2023]
(Reuters) - Most global mega-cap stocks continued their slide in
October, hit by the rise in U.S. interest rates and lacklustre
third-quarter earnings growth among some top U.S. tech firms.
Google parent Alphabet's market capitalization dropped nearly 6% to
$1.56 trillion at the end of October, as its cloud business faced its
slowest growth in 11 quarters, primarily due to reduced corporate
spending on cloud-related services in response to the global economic
slowdown. |
A sign is pictured outside a Google office near the company's
headquarters in Mountain View, California, U.S., May 8, 2019. REUTERS/Paresh
Dave/File Photo |
Tesla's market value tumbled almost 20% to $638 billion last
month, largely due to the impact of rising U.S. interest rates
on electric vehicle (EV) demand. Additionally, Panasonic
Holdings, a key supplier to Tesla, announced a reduction in
automotive battery production in Japan for the September
quarter, highlighting a global slowdown in EV sales.
U.S. chipmaker Nvidia Corp's market cap dropped 6.3% to $1.01
trillion at the end of last month on reports it may be forced to
cancel up to $5 billion worth of advanced chip orders to China
in compliance with new U.S. government restrictions.
On the other hand, Microsoft's market value jumped 7.1% to $2.5
trillion, buoyed by its strong fiscal first-quarter results in
all segments. This growth was attributed to strong performances
in cloud computing and PC businesses, bolstered by increased
customer interest in its artificial intelligence offerings.
Meanwhile, Saudi Arabian Oil Co's market cap slumped nearly 5%
to $2.1 trillion, affecting by ongoing conflict in the Middle
East and a decline in oil prices.
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in
Bengaluru; Editing by Mark Potter)
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