Graphic: Mega-cap firm valuations fall amid rising rates, tech earnings concerns

Panasonic Holdings

01/11/2023 09:51

Nov 1 (Reuters) - Most global mega-cap stocks continued
their slide in October, hit by the rise in U.S. interest rates
and lacklustre third-quarter earnings growth among some top U.S.
tech firms. 
    Google parent Alphabet's  GOOG.L  market capitalization
dropped nearly 6% to $1.56 trillion at the end of October, as
its cloud business faced its slowest growth in 11 quarters,
primarily due to reduced corporate spending on cloud-related
services in response to the global economic slowdown.
    Tesla's  TSLA.O  market value tumbled almost 20% to $638
billion last month, largely due to the impact of rising U.S.
interest rates on electric vehicle (EV) demand. Additionally,
Panasonic Holdings, a key supplier to Tesla, announced a
reduction in automotive battery production in Japan for the
September quarter, highlighting a global slowdown in EV sales.
    U.S. chipmaker Nvidia Corp's  NVDA.O  market cap dropped
6.3% to $1.01 trillion at the end of last month on reports it
may be forced to cancel up to $5 billion worth of advanced chip
orders to China in compliance with new U.S. government
restrictions.
    On the other hand, Microsoft's  MSFT.O  market value jumped
7.1% to $2.5 trillion, buoyed by its strong fiscal first-quarter
results in all segments. This growth was attributed to strong
performances in cloud computing and PC businesses, bolstered by
increased customer interest in its artificial intelligence
offerings.
    Meanwhile, Saudi Arabian Oil Co's  2222.SE  market cap
slumped nearly 5% to $2.1 trillion, affecting by ongoing
conflict in the Middle East and a decline in oil prices.
    

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Top 20 companies in the world by market cap Top 20 companies in
the world by market cap    https://tmsnrt.rs/3OAhlz8
Change in market cap in October Change in market cap in October 
  https://tmsnrt.rs/47cjbgK
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 (Reporting By Patturaja  Murugaboopathy and Gaurav Dogra in
Bengaluru
Editing by Mark Potter)
 ((patturaja.muruga@thomsonreuters.com;))