The share prices of most of the US big-tech firms have faltered – and underperformed the broader market – since they reported another quarter of consensus-beating earnings results last week. This has also occurred despite a retreat in long-term Treasury yields (aside from in the past few hours) amid fresh concerns about COVID-19, which once upon a time might have boosted “long-duration”, “coronavirus-resilient” tech firms – at least in relative terms. One plausible explanation is that it reflects concerns about the sustainability of rapid growth in big tech’s earnings, which has fuelled its prior outperformance.
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