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Source: Global Times

[Global Times Comprehensive Report] This summer has been tough for large U.S. technology stocks. According to a report by the Wall Street Journal on July 30, the market value of the "Seven Tech Giants" (including Amazon, Nvidia, Microsoft, Apple, Meta, Alphabet and Tesla) in the U.S. stock market has evaporated by a total of $1.52 trillion in the past three weeks, setting a record for the largest drop on record. Previously, the financial reports released by Tesla and Google's parent company Alphabet led to a massive sell-off in the U.S. stock market, and the outside world also questioned the artificial intelligence that has driven the stock market to record highs.

Data map: The logo of Microsoft headquarters in Washington State, USA. (Visual China)

The Wall Street Journal said that, at least so far, investors have been disappointed with the first batch of technology companies' financial reports. Alphabet said on July 23 that its sales growth slowed in the second quarter due to its continued investment of billions of dollars to improve the level of generative artificial intelligence. The company's stock price fell 5% the next day. In addition, given the reduction in consumer spending on Tesla's core models, the company's revenue declined in the quarter, and its profitability was hit hard.

Some analysts worry that given the high valuations of technology companies, it will be harder for them to impress investors in the second half of this year. In addition, there are already signs that the number of companies achieving profit growth is increasing, which some investors see as a positive. Jeffrey Schultz, director of economic and market strategy at Kelly, said: "The 'tech seven' in the U.S. may no longer be a few companies that can achieve profit growth in the future."

This week, as Meta, Amazon and Apple release their financial reports, the "Seven Tech Giants" of the US stock market will face the next round of tests. According to reports, Meta will release its financial report on July 31, while Amazon and Apple will release their financial reports on August 1. Nvidia, the chipmaker that has pushed up the S&P 500 this year, plans to release its financial report later in August. (Wang Yi)