Commentary from capital.com
The S&P 500 and NASDAQ are experiencing their worst days in more than a month. The reason is the anxiety on the technological market after the fall of Facebook shares and concerns about tightening regulation for large technology companies.
When Facebook experienced one of the hardest drops their stock price has seen, Mark Zuckerberg was actively selling stocks and personally saved about $40 million, according to information from Securities and Exchange Commission filings, however personal wealth did not help Facebook’s stocks to be stable. Data from Capital.com shows that users started to open short positions actively, on March 19 the amount of short positions rose more than 20%. The amount of trades with this particular stock rose more than 70%.
Facebook shares lost 6.8 percent amid reports that US and European lawmakers asked for explanations from the head of the company – Mark Zuckerberg – about how a consulting company that worked for the presidential campaign of US President Donald Trump received unauthorised access to the data of 50 million social network users.
Recently, Facebook blocked the page of the co-founder of Cambridge Analytica – Christopher Wylie – who gave a disclosed interview. Channel 4 News published the video in which Cambridge Analytica executives are discussing with a potential client the discrediting of politicians through provocations.
Moreover, the head of the security department of Facebook – Alex Stamos – who voted for a more thorough investigation of Russia’s interference in the social network, is reportedly leaving the company because of disagreements with colleagues and management
Facebook’s shares showed an extreme drop, the largest since March 2014. However, Facebook was not the only one to lose its value. The fall in Facebook stocks put pressure on the S&P technology sector, which fell by 2.11%, as well as on the NASDAQ, which lost more than 2%.
Securities of other technological giants also fell in price – Apple lost in price 1.53%, Alphabet – 3%, and Microsoft – 1.8%, Snapchat – 3.47%. Investors are also worried about the two-day meeting of the Fed (US Federal Reserve), which begins on Tuesday.
Good to know! Investors can benefit not only from price growth, but from price decline as well. Opening short (sell) positions on CFD (contract for difference) platforms, like Capital.com, is one way to do so. The benefits of trading CFDs with Capital.com include segregated accounts, account security and broker services, regulated by a financial regulator. This commentary shall not be regarded as investment advice.
It’s important to remember that you trade at your own risk. You can lose all your invested capital once you begin trading. Do not, in any circumstance, trade with money that you can’t afford to lose.
Capital.com is a fintech startup providing an AI-powered trading platform designed to take trading to the next level. Available on both desktop and smartphone, the trading platform lets users trade CFDs on the world’s top markets including Forex, cryptocurrencies, commodities, indices and more. The company received a $25 million investment from VP Capital and Larnabel Ventures. Capital.com is licensed by CySEC.