Technology stocks slump on weaker forecasts
LinkedIn, Tableau Software among biggest losers
Investors bailed out of a variety of big technology stocks Friday on concerns that future growth will be weaker than expected.
Some of the biggest tech names sold off in a big way.
Shares of the social media firm LinkedIn plunged 43 per cent — their worst day in history — after the company released a weak forecast for 2016 that disappointed market watchers.
Shares in data analytics company Tableau Software lost almost half their value after issuing a similarly bleak 2016 outlook.
Other social networking stocks also fell notably. Facebook dropped by 5.8 per cent; Twitter dove by seven per cent.
But the carnage was wider than just the social media companies. Amazon shares fell more than six per cent, Google parent Alphabet fell almost four per cent, Netflix plunged 7.7 per cent and Apple dipped almost three per cent.
Recession fears
The selloff in technology was sparked by growing recession fears among investors.
Investors were discouraged by a report that showed U.S. employers added 151,000 jobs last month, a sharp deceleration from recent months as companies shed education, transportation and temporary workers.
Many of the big technology stocks are especially vulnerable to selloffs as they trade at high multiples on expectations that strong growth will continue.
The tech-heavy Nasdaq Composite Index closed Friday at 4363, down 146 points, or 3.3 per cent.
With files from The Associated Press