Big Tech woes lead to layoffs, resulting in stock surge


Over recent months, Silicon Valley has been struggling to keep its position as an endlessly burgeoning region of massive profits and possibilities.

Technology stocks listed on NASDAQ have been decreasing in value, making the chart pattern for the NASDAQ Composite Index quite sobering reading.

Indeed, so severely have the tables turned on Silicon Valley's 'big tech' giants that European stock markets, with their legacy companies which have been in establishment for in some cases hundreds of years, have been outperforming the giants of the electronic revolution for many months.

Something had to give, and yesterday some of the most popularly traded companies in North America's big tech sector began to announce significant redundancies of staff.

Following last week's well publicized redundancies at Alphabet, Google's holding company, there have been more wounded tech firms following suit.

The layoffs at Google actually had a positive effect on stock values, and now other firms in a similar position are announcing their intention to go down a similar path.

Swedish music streaming service Spotify witnessed its shares rally yesteda as it announced its plan to cut hundreds of jobs to help rein in costs.

Shares of Alphabet rocketed at the end of last week, jumping 5% and adding more than $50 billion in market value, following the tech giant’s decision to lay off 12,000 workers on Friday, demonstrating that it had overspent and grown its business to rapidly since the 'e-commerce revolution' which took place in 2020 when many Western governments locked their populations down.

This appears to be a proven strategy, as those with a keen eye who have been monitoring the performance of Meta (previously known as Facebook) will have noticed that its shares have skyrocketed about 50% since the firm announced in November it would cut more than 11,000 jobs.

Silicon Valley was notoriously bloated, and many highly paid staff were allegedly sitting in vacation homes and refusing to come to the office during 2021. The tables are now turning, and the need to keep shareholders happy appears to be paramount at last.

Buy or sell shares with CFDs in some of the world's biggest publicly listed companies on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Shares

Apple in Trouble: Shares Fall More Than 3.5% Pfizer: Will It Be Ramped Up, or Has That Ship Sailed? Top 5 Stocks to Watch in September: Retail Bargain Bonanza, EVs Taking Charge and Tech Giants Make Hay Market Analysis: Shares of HPQ Fall Sharply after Report NVDA Analysis: Share Price Rises after Positive Report

Latest articles

Weekly Market Wrap With Gary Thomson: UK STOCK MARKET RISES, S&P 500 FALLS, OIL ANALYSIS, EUR/GBP

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. UK stock market rises

Forex Analysis

EUR/USD Analysis: Key Support Zone Resists Selling Pressure

Today, fresh monthly values of the PMI index, which is considered a leading indicator of the state of the economy, have become known: France: actual 43.6, expected 46.2. This is the worst economic contraction since the coronavirus.Germany:

Forex Analysis

USD/JPY Analysis: Rate Reaches Maximum of the Year

This morning, the Bank of Japan's decision on the interest rate, which has been kept at -0.1% since 2016, became known. The rate size remained unchanged. Although surprises could occur due to the fact that inflation is still above

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.