The world’s leading tech stocks received a heavy blow from G7’s corporate tax deal revision.
Earlier, Japan’s Finance Minister confirmed setting the minimum corporate tax among member states to 15%. Republicans were quick to voice their disapproval of the term, but this did not prevent the tech juggernauts from falling.
Apple Inc, Alphabet, and Amazon all shed between 0.2% to 0.5% as soon the announcement reached the public. Microsoft and Facebook, on the other hand, managed to notch their respective 0.6% advance during the same session.
The latest decision from the world’s most powerful economies should revise the competition in the market. In the current running, countries with the lowest tax thresholds attract many foreign direct investments. The decision is expected for adoption among G20 members as soon as the parent organization settles its affairs.
Mexico, a member of the G20, expressed approval of the mechanism, citing that this would create a level playing field among countries. However, with the lack of additional catalysts in the market to date, investors’ focus will remain pinned on the approval of the decision in the U.S. over the coming months.
Meanwhile, some Reddit favorites are largely unaffected by the news. Meme stocks, namely AMC Entertainment, GameStop, and Blackberry, all ended the day in the green.
AMC alone managed to close last week with an 85% gain after the share sale announcement.
Analysts noted that when uncertainty arises in strong industries, such as technology, the automatic response is to gravitate towards meme shares.
Here is How Tesla Reacted
Tesla has become a hybrid of meme and technology over the past months. Elon Musk’s deep involvement with Bitcoin lately has become the center of discussion and also of speculations.
Along with the announcement of G7, TSLA fell by 0.83% or $5.13 to a round figure of $600.00 per share during the after-hours session.
Nevertheless, analysts remain bullish on the EV maker’s future performance. Wall Street analysts gave the stock a $1,000.00 per share price target due to the expectations on the green tidal wave from the world’s two leading economies.
Both the United States and China voiced out willingness towards green development, bringing along attention to electric vehicles.
This newly-incurred attention and institutional support give investors greater hope for the future trajectory of Tesla stock.
For the record, TSLA stock shed off nearly 12% in May, mainly due to Bitcoin fluctuations.