Weak financial performance will please only competitors but not investors. Two technology giants, Amazon and Google, published very modest profit reports and forecasts for the current quarter. Shareholders were disappointed by these quarterly results causing companies stock collapse. It is worth noting that the fall was really unpredictable and steep. During the extended trading session, Amazon and Google lost 7.5 percent and 3 percent, respectively. At the same time, during the main session, both assets showed steady growth of 7 percent and more than 4 percent. However, the growth did not just stopped, it ended in a specific and unexpected collapse of quotes. At first, investors were frustrated with the income data and then with weak forecasts.

It should be noted that this fall is different from the others seen in the last ten years. The main distinction lies in external factors, namely the gradual monetary policy tightening and the mopping up of excess liquidity. It is very hard for assets to recover in value under such circumstances. Many experts began to agree that the launch of QE after the 2008 financial collapse was a serious mistake. It completely blurred the boundaries of such concept as risk. Bonds worth hundreds of billions had negative returns, junk bonds were traded with minimal yields, etc. Amazon and Google have been among the leaders of the uptrend in the stock market in recent years, but their value is inadequately high, so attention will now be focused on them. There were a lot of such “bubbles” in history.

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