Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Beijing time on September 9 news, the technology stocks are too high, a new round of economic stimulus talks stalled, depressed U.S. stocks lower, the technology sector led the decline. By the close, the Dow was down 632.42 points, or 2.25 per cent, at 27,500.89, the Standard and Poor’s 500 index was down 95.12 points, or 2.78 per cent, at 3,331.84 and the Nasdaq was down 465.44 points, or 4.11 per cent, at 10,847.69.

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Major U.S. tech giants fell across the board:

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Major U.S. tech giants.

The vast majority of China’s major technology stocks fell:

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

China’s major technology stocks.

China’s stock price.

Most of the other mid-cap stocks fell, with rising companies including:

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Other mid-cap stocks rose.

Companies that were flat on the previous trading day include:

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Other Chinese stocks that were flat from the previous trading day.

Falling companies include:

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Other mid-cap stocks fell.

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

NIO still down more than 5% in favour of Deutsche Bank

NiO shares fell 3.9 per cent in premarket trading on Tuesday, despite being endorsed by Deutsche Bank analyst Edison Yu. For the first time, Edison Yu included NIO shares in the study and gave Buy a rating and a target price of $24, 33.5 per cent higher than NIO’s previous closing price of $17.98. He sees NIO as a leader in China’s new car-making forces. Edison Yu refers to four companies in China’s new car-making power as the “four-person group”: NIO, Xiaopeng Automotive, Ideal Cars and Weimar, which have received investment from deep-pocketed tech giants and local governments. He believes the “group of four” can “co-exist” with Tesla because they “have enough room to eat into the market share of traditional car makers.” Given that China is already the world’s largest electric vehicle market and currently has strong growth momentum, NIO is more focused on after-sales service, reducing customer battery concerns through power-changing technology, and developing a strong automotive ecosystem centered on software and artificial intelligence, we believe NIO will be able to gain a higher share of the high-end automotive sector.” More than 50 per cent of analysts who look at NIO’s shares give them a “buy” rating, but analysts give an average target price of about $17. In regular trading, NIO shares fell $0.96, or 5.34 per cent, to $17.02.

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Alibaba shares rose 14.4% in August

Alibaba’s shares rose 14.4 per cent in August, according to data from S.P. Global Markets. Alibaba’s shares plunged more than 5 per cent on August 7th as the US government announced a ban on TikTok and WeChat. Alibaba’s platform merchants may not be able to sell to U.S. consumers if the U.S. government expands its crackdown on Chinese companies. But when Alibaba reported first-quarter results that exceeded Wall Street’s expectations, the threat it might face was left behind. After the earnings report, several analysts raised Alibaba’s target share price to maintain a “buy” rating. Analysts were impressed by the strong growth in China’s e-commerce market and the likely high growth of Alibaba Cloud and Ant Group. News of Ant’s planned IPO was also a reason Alibaba’s share price rose in August. Ant Group is understood to be listed in Hong Kong and Shanghai, with a valuation of at least $200bn.

U.S./Foreign Technology Stocks.

Other foreign technology stocks fell mostly, with rising companies including:

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Other foreign technology stocks rose.

Falling companies include:

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Other foreign technology stocks fell.

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Tesla plunges more than 21% after rejection by S.P. 500

Tesla shares fell $88.11, or 21.06 percent, to $330.21 in regular trading Tuesday after U.S. stocks closed. Tesla has been a star on the U.S. stock market this year, rising nearly 400 percent as of Friday’s close, making it the second-best-performing component of the Nasdaq 100 after Zom. Tesla’s market capitalisation of about $390 billion on Friday, and the challenge of including a company with such a high market value in the S.P. 500, may be one reason why the Dow Jones Indices gave up on Tesla this time. Baird analyst Ben Kallo called Tesla’s absence from the Standard and Poor’s 500 index a “relatively surprising development.” Tesla’s share price will come under pressure after it was not included in the Standard and Poor’s 500 index, especially from investors looking to sell its shares to passive funds.” He still expects Tesla to eventually become a component of the S.P. 500. Tesla’s share price began to recover last week after news of a second-largest shareholder sell-off came to light. Another reason for Tesla’s plunge today was GM’s announcement that it would invest $2 billion in Nikola, a new energy vehicle startup, to design and produce Badger pickups.

Tech stocks fall more than 21% as worries depress U.S. stocks, not accepted by S. and P. Tesla

Apple shares down nearly 7% as Goldman Sachs sees out of touch with business growth

Analysts at Goldman Sachs reported that Apple’s revenue and profit growth were not in line with current share prices, especially compared with tech giants such as Amazon and Microsoft, and fell in regular trading Tuesday. In an investment report, Goldman Sachs analyst Rod Hall said Apple’s growth rate “does not match the highest level since 2011 that its share price is at the same level as the S.P. 500”, although Goldman and its team “have not been shorting” Apple’s stock, “and we expect a shock to apple’s share price that is commenced with its growth”. Goldman Sachs downgraded Apple’s stock to “sell” in April and has now given a target price of $80. Apple’s shares have risen more than 70 per cent since April, driven by better-than-expected revenue and profits, as well as the recent “1-4” share split. Daniel Martins, an Apple research expert, said in an investment report on Friday that the company had experienced its third-worst week since the March plunge, falling 3 per cent, but noted that apple shares “should have fallen even more”. Production of the next generation of iPhones will not begin until mid-September, the Nikkei Asia Review reported Tuesday. Apple is expected to produce about 75 million new iPhones this year, down from 80 million planned. Apple confirmed Tuesday that it will hold a new product launch on September 15, when it will release software, hardware and services including the 5G iPhone and iOS 14. In regular trading, Apple shares fell $8.14, or 6.73 percent, to $112.82.