The level of uncertainty surrounding the coronavirus pandemic is having a severe impact on the global economy. Tech firms across the world are feeling the pinch as it was evident in the decline in market capitalisation value. According to a report by CNBC, the big five tech firms — Amazon, Alphabet, Apple, Google and Microsoft — lost a combined of close to $420 billion in market value.The report further states that shares of Apple fell by 9.88% whereas Facebook was down by 9.30%. Google’s parent company Alphabet’s shares plunged by 8.2% whereas Amazon and Microsoft were down by 7.98% and 9.48% respectively. One of the biggest contributing factors in the decline has been the coronavirus outbreak and the impact it is having on the economy.
This isn’t the first time this week that these companies have taken a hit in market value. On Monday, the five companies combined lost $320 billion but recovered during the week only to fall again.
It’s not just weekly numbers in the market value that have plunged. Since the start of the year, all the five companies have seen their market value fall down. The CNBC report states that Facebook is down by 24.7% whereas Google is down by 17%. Apple, on the other hand, has seen its market value fall by 15.5% whereas Microsoft and Amazon are down by 11.8% and 9.3% respectively.
Tech firms are taking unprecedented steps like making it compulsory for all employees to work from home. Social media company Twitter has made it compulsory for all its employees to work from home. The company said that these are unprecedented times and unprecedented steps have to be taken. Even Google and Amazon are encouraging employees to work from home — at least for those who aren’t needed to be physically present in work spaces.