Large swings for big technology stocks have been common this year during a head-spinning stretch that has dragged the group down.
Some of the biggest one-day changes in market value in history have happened in 2022 after big tech companies’ earnings. In February, a big drop in Amazon.com’s shares shaved $191 billion from its market value,the most everfor a company in a single day.
Options traders appear to be betting the volatility will continue over the this week, when several big tech companies report their earnings results. (Their forecasts don’t indicate the direction of the move, only the size.)
Options traders are wagering on around a 5.4% move in Apple shares after its earnings this week, above the average move of around 3.3% after the past eight earnings releases, according to Cboe Global Markets data.
They’re betting on a roughly 7% move for Alphabet after its earnings and through Friday. The stock has swung around 5.1% on average after the past eight releases.
Expectations for Meta’s post-earnings move are even higher, with a roughly 13% post-earnings move forecast through Friday. The stock has swung around 9.2% on average after the past eight releases, according to Cboe.
The big swings for tech stocks have continued last week. Snap sharesplunged 28% Fridayafter it disclosed a further slowdown in sales growth and signaled the digital-ad market could remain sluggish. Something similar happened in July, when it posted its weakest-ever quarterly sales growth as a public company.
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