SVB collapse: Some happy, some sad…backing stocks sink, tech stocks gain momentum. Silicon Valley Bank Collapse Google Meta Amazon Microsoft Tesla Boost Stock Price
There is a storm in the stock market after the collapse of Silicon Valley Bank of America. It’s a nightmare for banking stocks. Tech stocks, on the other hand, have a lot of strength in this event.
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Silicon Valley is home to some of the world’s largest technology companies. In its name, the collapse of Silicon Valley Bank shook the American banking sector. On the other hand, it is a great opportunity for tech companies. These include everything from Tesla to Google, Microsoft and Amazon.
The crises of Silicon Valley Bank, Signature Bank and then First Republic Bank have hurt stock market investors. If we look at the KBW Bank index, it has lost up to 15 percent in the last one week. This is an index that tracks the shares of 22 of America’s largest banks.
Also read: Don’t let me go bankrupt, appeal to Silicon Valley Bank
Great growth in Google, Amazon shares
Banking shares can be seen falling in the last 5 days. However, shares of major companies such as Google, Amazon, Meta, Microsoft and Tesla have seen tremendous gains over the past week.
- The market capitalization of America’s Big 4 tech-Internet companies rose by $560 billion in one week.
- In the last 5 days, the share price of Microsoft Corporation has increased by 12.88 percent. It now costs $279.43.
- The share price of Alphabet Inc., the parent company of Google, also increased by 12.77 percent in 5 days. It is now at $101.62.
- Amazon’s stock also rose as much as 10.13 percent. Its price reaches $98.95.
- Shares of Meta, the company that controls Facebook, Instagram and WhatsApp, rose 9.97 percent to $195.61.
- On the other hand, the share price of Elon Musk’s company Tesla Inc. has also increased by 7.50 percent in the last 5 days. It costs $180.13.
See also: Credit Suisse-UBS merger: Weekend to decide Credit Suisse tomorrow, UBS plans
How safe are shares of technology companies?
Investors are currently seeing more stability in tech and internet company stocks. The main reason for this is the ups and downs in the financial sector as well as the environment of uncertainty. At the same time, technology companies have strong balance sheets and have substantial cash reserves.
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