Alphabet (GOOGL) just closed in bear market territory for the first time since 2011.
The company, which owns Google, ended Monday down more than 20% off its all-time high in July.
It wasn’t the only tech company that plunged. All of the other FAANG stocks — Facebook, Apple, Amazon and Netflix — closed down by about 4% to 6% Monday. The stocks have been hammered in recent weeks as investors ditch tech.
Facebook (FB) stock fell nearly 6% Monday as the company continues to deal with fallout from a New York Times article that detailed the company’s reaction to political scrutiny and its Cambridge Analytica scandal.
Early in the day, Apple (AAPL) sank on news that its most recent line of phones may not be selling as well as the company or its investors had hoped. The stock fell again after the Wall Street Journal reported that Apple has cut orders for its iPhone XR, iPhone XS and iPhone XS Max. The company just barely escaped entering bear market territory at market close.
Late last month, Amazon warned of a weaker-than-expected holiday season. Shares of the company sank on the news. The company closed down about 5% on Monday.
And Netflix’s stock slide started in July, when the company reported that it added about 1 million fewer subscribers than it expected in the second quarter. Shares of the company bounced back a bit after it reported good results during its most recent quarter, but the stock has continued to slip.
Some observers have noted that highly valued tech companies are often hit hard on days when the entire market slumps.
These companies are also vulnerable to the spike in long-term bond yields and signs from the Federal Reserve that it plans to keep hiking short-term rates throughout 2019. That could slow the economy and start to hurt their profit growth, leading some investors to pull out of tech and invest in safer options like banks and utilities.
CNN Business’ Paul R. La Monica and Jill Disis contributed to this report.