There is a storm in the stock market after America’s Silicon Valley Bank sank. This is like a nightmare for banking stocks. On the other hand, there is a lot of power in this incident in Tech Stocks.
Image Credit source: TV9 Network
Silicon Valley is home to the world’s biggest tech companies. The incident of sinking of the Silicon Valley Bank named after this has shaken the banking sector of America. On the other hand, it is a great opportunity for tech companies. This includes everything from Tesla to Google, Microsoft and Amazon.
The crisis of Silicon Valley Bank, Signature Bank and then First Republic Bank has troubled the stock market investors a lot. If we look at the KBW Bank Index, it has lost up to 15 percent in the last one week. This is an index tracking the shares of 22 big banks of America.
read this also : Don’t let me go bankrupt, begs Silicon Valley Bank
Great growth in Google, Amazon shares
Banking shares may have seen a decline in the last 5 days. But the shares of all the big companies like Google, Amazon, Meta, Microsoft and Tesla have seen tremendous growth in the last week.
- The market capitalization of America’s 4 big tech-internet companies has increased by $ 560 billion in a week.
- The share price of Microsoft Corp has climbed 12.88 percent in the last 5 days. Its price is now at $ 279.43.
- The stock price of Google’s parent company Alphabet Inc has also increased by 12.77 percent in 5 days. It is now at $101.62.
- Amazon’s stock has also seen a rise of up to 10.13 percent. Its price has reached up to $ 98.95.
- The share price of Meta, the company controlling Facebook, Instagram and WhatsApp, has increased by 9.97 percent to $ 195.61.
- On the other hand, the share price of Elon Musk’s company Tesla Inc. has also seen an increase of 7.50 percent in the last 5 days. Its price is 180.13 dollars.
See also: Credit Suisse-UBS Merger: Weekend will decide the future of Credit Suisse, UBS will make a plan
How safe are the shares of tech companies
At present, investors are seeing more stability in the shares of tech and internet companies. The main reason for this is the upheaval in the financial sector as well as the atmosphere of uncertainty. At the same time, the balance sheet of tech companies is strong and they have sufficient cash reserves.
