Stock market disaster Black Monday sends tech stocks into nosedive

Black Monday, the stock market disaster that occurred yesterday, has hurt more than just Chinese stocks. Almost all major tech stocks are also down following the turmoil, with Apple, Google, Microsoft and Facebook all noticing significant slides in stock price.

Twitter hit a new low of $23.61, but managed to push back to $25.26 in after hour trading. That is still lower than its IPO price in 2013. Market valuation for the microblogging service values the company at $17.5 billion (£11.1 billion); acquisition territory.

After a strong run of form, Facebook noticed a large drop from $86.18 to $75.50, but like Twitter it managed to shoot back to $82.09 in after hour trading. The company is a little safer, considering before Black Monday it wasn’t slumping.

Apple continues a downward trend from the $132 peak in June. It now sits at $103.16, after dropping as low as $95 when stocks opened on Monday. In the past two months, Apple has knocked off $120 billion (£76 billion) from its market value.

Microsoft and Google noticed smaller losses, at 5.8 and 7.9 per cent, respectively.

After Monday trading had finished, all tech stocks were down on the NYSE. Yahoo was down 4.92 per cent, Oracle down 3.94 per cent, LinkedIn down 4.21 per cent and Adobe down 5.85 per cent.

Even stocks that had been ballooning out of control before Black Monday noticed significant decline. Amazon went from $530 to $463 in a weekend, Netflix down from $122 to $96 in the same time period.

The biggest losers were the Chinese stocks, taking an absolutely hammering after the Chinese economy failed in more ways than one. Alibaba is down to $65.71, lower than its original IPO price and an 18 per cent loss in one month. Baidu also noted a large drop in stock price, from $153 to $125, although that has jumped back up to $141.

Most companies will be fine in the long term, although for Alibaba and Twitter it is more exposure and decline, rather than a slight cut in an otherwise strong year.

Apple CEO Tim Cook wrote a letter to stock analyst Jim Cramer claiming that Chinese growth was accelerating, an odd move by Cook to potentially keep shareholders happy.