Shares in the so-called Fab Five tech companies -- Google (GOOG), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Facebook (FB)n-- all tumbled today as the markets opened in New York, raising fears about wider implications for the tech industry.
Google opened at $572.19, a 6.58 percent fall from the previous close, while Apple opened at $95.12, dropping 10.06 percent. Amazon opened to a 6.18 percent decrease and was trading at $463.90, while Netflix fell 14.6 percent and opened at $88.75. Facebook dropped 11.8 percent and opened at $75.90.
Sejuti Banerjea, deputy manager at Zacks Investment Research, said investors were reacting to the news that has been flowing out of China for the past two weeks. In a blog post, Banerjea said the tumble might not be a sign of the long term as the markets stabilize. "The pessimism may not be long-lived, however, because these companies generally source a ton of components from China as well, so the cost of inputs is down following the devaluation," he said.
The last time Apple shares dipped below $100 was October 2014, after a 7-for-1 split in June of that year. Before markets opened, CEO Tim Cook emailed CNBC's Jim Cramer to quell fears around Apple's China performance.
— Carl Quintanilla (@carlquintanilla) August 24, 2015
A bounce after opening led to speculation of a market correction taking place.
— Carl Lussier (@Invest3d) August 24, 2015
Buying some $NFLX. Markets go up and down, but your commitment to binge watch knows no bounds.
— Sean Percival (@Percival) August 24, 2015
Alibaba stock also dropped to $58.14 at opening, a 17.27 percent decrease. The company is now trading below its IPO of $68, and less than half the 52-week high of $120.