Financial analysts have aired fears that technology company valuations are overblown after US tech stocks tumbled 4% on Friday, losing $140 billion.
They continued to make losses on Monday despite recovering slightly at the end of the day, with Apple falling from $155.10 on Friday to $145.42 yesterday, and Amazon dropping from $1,012.99 on Friday but had lowered to $948.41 yesterday.
Netflix shares have fallen more than 4%, Google by 0.86%, Facebook by 0.78% and Microsoft by 0.77%, leading analysts to ask whether tech firms are overvalued, and whether the stock falls represent a pause in investment or whether they foreshadow more losses in the market.
Senior market analyst at ETX Capital Neil Wilson said in a report by The Telegraph: "The big US tech stocks have gone stratospheric this year and investors are querying if there is anything left in the tank."
"At the moment it looks like it's just a pause that allows for some profit taking before another push higher. But it certainly has the potential to rattle markets if it continues," he explained.
Apple's stock price hit a record high in February of $136.68 thanks to excitement surrounding the next iPhone model, but other technology giants have suffered on the stock market. Following Snap's IPO March debut that saw it valued at $30 billion on the first day of trading, it has since plummeted, with shares losing plenty of their value from a $27.09 peak in March to today's $18.20 valuation.
A study released at the start of 2017 found that one-third of tech IPOs within the last decade are now trading below their initial valuations.
