Wealth curve

As technology stocks have fallen, institutional investors ha

Institutional investors' shareholdings in large capitalized technology and Internet companies declined in the fourth quarter of last year, and the average portfolio allocation for the technology Internet is decreasing as the share price in the sector falls sharply.
Morgan Stanley (42.42, 0.26, 0.62%) said that institutional investors' shareholdings in the technology and Internet sectors fell to their lowest level since the second quarter of 2017 in the fourth quarter of last year, and moderately reduced Risk exposure for Apple, Amazon and Facebook, as well as Oracle and IMB.
The fourth quarter of last year was very difficult for many large technology companies. Apple (172.03, 1.10, 0.64%) shares fell more than 30% during that period, Amazon (1622.1, -5.48, -0.34%) fell 25%; is also the worst performance of the two companies since 2008 Quarter. The share price of Facebook (162.56, 0.27, 0.17%) fell 20% in the last three months of 2018, the biggest quarterly decline since 2012.
October 20-February 2019, Apple (White), Amazon (Blue) and Facebook (Purple Red) stock price trend
Institutions' shareholding in Apple fell by 50 basis points to 2.4%, "for C2Q17 The lowest level of institutional holdings since then," Morgan Stanley analyst Katy Huberty wrote in a report to clients. This is also the largest month-on-month decline since the fourth quarter of 2012.
At the same time, Apple's weight in the S&P 500 also dropped by 80 basis points to 3.4%. Herb wrote, "This means that the gap between Apple's S&P 500 weight and institutional holdings (96 basis points) has narrowed to less than 1% for the first time since 2016." The stock price decline in the fourth quarter caused Apple to lose its position as the most valuable stock on Wall Street, although the company quickly regained its former honor.
"There are many factors that cause investors to sell Apple stocks or reduce their positions," Morgan Stanley wrote, citing "a number of iPhone vendors cutting guidance data," "macroeconomic instability," and Apple and Qualcomm. Judgment of legal disputes may not be conducive to Apple, and so on. The investment bank also said that the fourth quarter "investor sentiment / attitude is very negative"The expected rebound in stock prices "will reflect the level of institutional investor holdings in the first quarter of this year."
According to Morgan Stanley, the agency's shareholding in Amazon fell 30 basis points in the fourth quarter. Facebook's share fell by 10 basis points. Both companies' share prices rebounded in 2019.
In addition, institutional investors' shareholdings in other companies increased in the fourth quarter, including growth in Alphabet's shareholding. 10 basis points; Microsoft's growth has slightly increased its institutional shareholding to 3%, but "still below the index weight of its S&P 500," Morgan Stanley wrote.