By Emily Bary
With 10%-plus drops off their recent closing highs, Amazon and Nvidia shares have joined Tesla shares in correction territory. Meta’s stock is already in a bear market.
Amazon’s stock is now off more than 12% from its recent closing high.
Shares of Amazon and Nvidia entered correction territory on Tuesday as the technology sector’s selloff intensified.
The recent pressure on Amazon’s stock (AMZN) means it has essentially wiped out all the gains it saw following the company’s third-quarter earnings report. Those earnings originally seemed to change the tune around the stock, solidifying the company as one that’s benefiting from artificial intelligence.
And while that may still be true, Wall Street seems less preoccupied with finding AI winners given increased scrutiny of the cost of the technological buildout. Amazon recently completed a $15 billion debt deal, partly to finance its AI ambitions.
Read: As Amazon raises $15 billion in a bond deal, investors worry about companies taking on too much AI debt
Meanwhile, the selloff in Nvidia shares (NVDA) comes as that company prepares to report earnings on Wednesday afternoon.
“Numbers and expectations are very well telegraphed,” said Jeffrey Favuzza, a tech, media and telecommunications strategist with Jefferies. But there’s still “a lot of excitement” around Nvidia, he added, while predicting a “buy-the-dip mentality,” as earnings could prove to be a clearing event for the market.
Other Big Tech stocks have swiftly fallen out of favor as well. Tesla’s stock (TSLA) is already in a correction, which is defined as a drop of 10% or more from a recent closing high. And since Nov. 4, Meta’s stock (META) has been in bear-market territory, which is categorized as a 20%-plus decline off recent closing highs.
See also: The lone bear on Meta’s stock foresaw its struggles – and sees more trouble ahead
Looking outside the group of megacap tech stocks known as the Magnificent Seven, shares of Broadcom (AVGO) and Advanced Micro Devices (AMD) entered corrections earlier in November, while Oracle’s stock (ORCL) has been in a bear market since Oct. 30. It closed Tuesday at 33% off its recent highs.
Oracle shares have given back all the massive gains they saw after the cloud company’s last earnings report, when it disclosed 359% growth in its remaining performance obligations, a measure of business that has been contracted but not yet recognized as revenue.
“Basically that entire RPO backlog that OpenAI gave them and committed to is now completely out of the stock,” Favuzza said.
Apple (AAPL) and Alphabet (GOOG) (GOOGL) shares have held up better, both off less than 3% from their recent highs. Apple has been more disciplined than the other Big Tech players when it comes to AI spending, so it’s not subject to the same investor worries about the cost of AI financing. And Alphabet is “still the most crowded long on a tactical basis” within the Magnificent Seven, according to Favuzza.
“They seem to be firing on all cylinders from the product-innovation side now that there’s a little bit less concern on the antitrust side,” he told MarketWatch. A judge in September declined to issue steep penalties in a monopoly case that could have forced the divestiture of Chrome.
More from MarketWatch: Google’s Gemini 3 is finally here. Can it power Alphabet’s stock even higher?
-Emily Bary
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11-18-25 1637ET
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