Bulletin
Investor Alert

Aug. 5, 2019, 4:20 p.m. EDT

Facebook, Internet stocks decline on global equity selloff, potential government oversight after shootings

Facebook, Alphabet’s Google, Snap, Pinterest and others tumbled with the rest of the market as China/U.S. trade tensions mount

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Facebook Inc. Cl A (FB)
  • X
    Alphabet Inc. Cl A (GOOGL)
  • X
    Alphabet Inc. Cl C (GOOG)

or Cancel Already have a watchlist? Log In

By Jon Swartz


Bloomberg News/Landov
Internet stocks took a drubbing on Monday after China allowed its yuan currency to fall to a more-than-10-year low versus the dollar.

The joy ride for internet stocks took a temporary detour on Monday.

Shares of industry stalwarts Facebook Inc. /zigman2/quotes/205064656/composite FB -2.38% , Alphabet Inc.’s /zigman2/quotes/202490156/composite GOOGL -0.67%   /zigman2/quotes/205453964/composite GOOG -0.60%  Google, Snap Inc. /zigman2/quotes/205087158/composite SNAP -1.89% , and others tumbled after China allowed its yuan currency to fall to a more-than-10-year low versus the dollar in an escalating trade war with the U.S.

See now: Dow tumbles over 500 points as yuan slide deepens U.S.-China trade fight deepens

All three stocks declined at least 3% — reversing for one day their gains the past week following a series of positive results that pushed their shares up. Shares of the companies, whose rising customer memberships have propelled advertising revenue to record levels, are all up at least 10% in 2019.

Read now: Pinterest shares surge 16% on big revenue jump

To add to their woes, Facebook and Twitter Inc. /zigman2/quotes/203180645/composite TWTR -1.57%  were punished following shootings over the weekend that have investors jittery over intensified government oversight of the two social-media platforms. Twitter finished the day down 5.8%, which would be its biggest one-day decline since February. Facebook has dropped 3.8%.

Until today, Facebook appeared impervious to market machinations and regulatory oversight. That stock has climbed about 40% this year despite a record $5 billion settlement with the Federal Trade Commission; a report last week the FTC is examining Facebook’s acquisitions as part of a broader antitrust investigation of the social-networking giant; and withering scrutiny from state and national lawmakers. One presidential candidate, Sen. Elizabeth Warren, D-Mass., has vowed to break up Facebook and Google, with no apparent impact on either stock.

Shares of two other Big Tech companies under the regulatory microscope — Apple Inc. /zigman2/quotes/202934861/composite AAPL +0.48%   and Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN -1.68%  — also were battered. Apple, which relies heavily on China to manufacture iPhones, Macintoshes and other hardware products, suffered the sharpest decline. Its stock dove 5.2%.

/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 185.85
-4.54 -2.38%
Volume: 16.88M
Oct. 18, 2019 4:00p
P/E Ratio
31.49
Dividend Yield
N/A
Market Cap
$530.22 billion
Rev. per Employee
$1.57M
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 1,244.41
-8.39 -0.67%
Volume: 1.58M
Oct. 18, 2019 4:00p
P/E Ratio
25.12
Dividend Yield
N/A
Market Cap
$804.98 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 1,245.49
-7.58 -0.60%
Volume: 1.35M
Oct. 18, 2019 4:00p
P/E Ratio
25.14
Dividend Yield
N/A
Market Cap
$805.68 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/205087158/composite
US : U.S.: NYSE
$ 13.52
-0.26 -1.89%
Volume: 39.06M
Oct. 18, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$18.65 billion
Rev. per Employee
$409,309
loading...
/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 38.99
-0.62 -1.57%
Volume: 12.59M
Oct. 18, 2019 6:30p
P/E Ratio
12.92
Dividend Yield
N/A
Market Cap
$30.14 billion
Rev. per Employee
$776,112
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 236.41
+1.13 +0.48%
Volume: 24.38M
Oct. 18, 2019 4:00p
P/E Ratio
20.15
Dividend Yield
1.30%
Market Cap
$1068.38 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 1,757.51
-29.97 -1.68%
Volume: 3.37M
Oct. 18, 2019 4:00p
P/E Ratio
72.92
Dividend Yield
N/A
Market Cap
$869.36 billion
Rev. per Employee
$359,671
loading...

Jon Swartz is a senior reporter for MarketWatch in San Francisco, covering many of the biggest players in tech, including Netflix, Facebook and Google. Jon has covered technology for more than 20 years, and previously worked for Barron's and USA Today. Follow him on Twitter @jswartz.

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.