Meta Platforms (META)stock fell sharply on Tuesday as the market digested the US CPI print. A higher than expected number led to a sharp sell-off in equities with all the main indices closing sharply lower. However, tech took the biggest brunt of the selling with Apple and Alphabet down 6%, amazon down 7%, and Meta Platforms down a whopping 9%.
Adding to tech pressure and especially for the aforementioned companies is the strength of the US dollar. These are global companies, many of whom generate more than half of their revenues in overseas currencies.
When that overseas currency depreciates (think euro, yen, GBP, etc.), then all of a sudden those foreign revenues are worth less in dollar terms.
Adding to the sentiment of Meta stock this morning is news that South Korea has fined it and Alphabet (GOOGL) over violation of privacy laws, according to Reuters.
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