Apple, Amazon, Microsoft, Facebook and Google-parent Alphabet were among the companies hardest hit by the market sell-off on Monday. Amid rising concerns of the COVID-19 outbreak turning into a full-fledged pandemic, stock markets around the world plummeted on Monday, eliminating much of the gains accumulated over the first weeks of 2020.
After a weekend of bad news from Italy, South Korea and Iran, which all saw the number of new coronavirus infections spike over the past few days, investors are increasingly worried about the global economic implications of the coronavirus, having previously hoped that the fallout would be limited outside of China.
The so-called GAFAM group of tech giants collectively shed $237 billion in market capitalization on Monday, as each of the five saw its share price drop by more than 4 percent. While all of them would be affected by a global economic slowdown, most experts agree that Apple is most exposed to the risks associated with the ongoing health crisis. China not only plays a crucial role in the company’s supply chain, but also accounts for a significant share of its revenue, which sets it apart from most of its rival tech giants, which don’t play a huge role in the Chinese market.
