The New Narratives That Sent Tech Tumbling

Recent reports have surfaced which convey the disastrous news of the FAANG stocks experiencing a loss of over $1 trillion in value following which Jim Cramer of CNBC has talked about the two narratives faulty enough to be responsible for the massive breakdowns in the tech sector. Even if you love sports betting with, you would know that how badly the tech stocks have been affected the last week.

The data centre, as we know is at the absolute core of the present-day, new-age tech which includes the cloud as well as the internet of things that is indispensable to the tech sector. It is this indispensable factor which ended up being the real culprits to bring down the position of tech as a whole as it ended up being peaking.

The reaction of the stock market to the latest Amazon and Google parent Alphabet’s recent earning report, both of them FAAN members, turned out to be the other culprit behind bringing tech down, as put forward by Cramer.

The entire sector is yet to recover from the defeat of tech by the data centre. It is this very narrative which is in abundance and it refuses to leave the scene despite the plethora of evidence on its contrary.

What Stopped the Tech Stocks?

Amazon and Alphabet, two of the leading examples of the (erstwhile) brilliance of the tech world, has sent the whole group off its feet by its dwindling quarterly reports. There is no going back from this despite any positive news from the individual companies which has had no impact on the raging bear market in tech.

What’s Next in the Stock Market?

Does this mean we are entering a world where bad news had outweighed the impact of good news?

If we had to believe Cramer, seems like that’s the case, and very much so. There is no going back for tech to a sustainable rebound without the data centre resettling to its former stability or that the display of its weakness implies nothing but an overcapacity instead of a slowdown caused by a cloud demand. From here, it only seems like a wait-and-watch game until the narratives have been reshuffled again.

In a recent interview, Cramer also interviewed the creator of Siri, Apple’s voice-enabled assistant. Turns out, even though Siri has been doing a lot better than it was before Apple’s acquisition back in 2010, it may be living its life to the best potential. Apple has even opened it up to third-parties and Siri has since been used in the most basic ways such as setting alarms, reminders, or playing songs on the speaker. That however, seems to be true of all popular voice assistants in general. Voice assistants have a potentiality much larger and one that hasn’t been fully explored totally by customers yet.

The tables are turning as far as the tech world is concerned with bad news in the form of the only news that matters and the narrative reinstating the game rules to take it back to the top again. However, as stated earlier, it is only to be left to the market to let things come back to stability at the moment.