It's not just the tech stocks that went down today. The S&P 500 index went down 1.85% and the Dow went down 1.29%. The tech stocks got hit a little harder on average, with the NASDAQ index going down 3.25%.
The fact that there were dramatic declines in a few tech stocks makes traders worry that there may be similar earnings surprises in other tech stocks, so they dump tech stocks. If they see in a couple of weeks that these worries were unfounded, they might buy these stocks back again and the prices could go up.
According to the financial press, the stock market seems to be responding to global economic issues: the Chinese economy, weak oil prices, etc. Some fear a global economic slowdown. Since Google makes most of its money from advertising, its stock price would respond to concerns about the level of global economic activity. If people are buying less, businesses are selling less and advertising expenditures go down. (Same for Facebook Twitter, etc.)
If you believe that tech stocks are unfairly undervalued at this point, you might want to buy while the prices are low. But there are no guarantees that they won't go down even lower.
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It's not just the tech stocks that went down today. The S&P 500 index went down 1.85% and the Dow went down 1.29%. The tech stocks got hit a little harder on average, with the NASDAQ index going down 3.25%.
The fact that there were dramatic declines in a few tech stocks makes traders worry that there may be similar earnings surprises in other tech stocks, so they dump tech stocks. If they see in a couple of weeks that these worries were unfounded, they might buy these stocks back again and the prices could go up.
According to the financial press, the stock market seems to be responding to global economic issues: the Chinese economy, weak oil prices, etc. Some fear a global economic slowdown. Since Google makes most of its money from advertising, its stock price would respond to concerns about the level of global economic activity. If people are buying less, businesses are selling less and advertising expenditures go down. (Same for Facebook Twitter, etc.)
If you believe that tech stocks are unfairly undervalued at this point, you might want to buy while the prices are low. But there are no guarantees that they won't go down even lower.