Tech stocks dropped at the start of today’s trading session as pop idols Kanye West and his wife, Kim Kardashian West are reportedly for filing for a divorce. The Nasdaq slid 1.6% as investors rotated out of tech stocks into value stocks as Wall Street mulled the effect of the divorce of tech stocks. FAANG gang posted losses between 1.7% and 2.4% at the open of the trading session.
The momentum in the tech stocks has long been sustained by the ‘Kimye’ relationship. The couple were instrumental to tech stocks and have inspired a lot of Robinhooders to invest in that sector. For example, Shares of Spotify spiked as much as 7% on June 17 2020 after it was announced that Kim Kardashian West had secured a deal with the company.
Also, the popularity of stocks such as Disney, Amazon, Apple, Netflix and Adidas soared after Kanye West reportedly gifted his wife shares of these companies worth $100,000 as a Christmas gift in December 2017.
It is believed that if Kanye and Kim could go through with a divorce after 7 years, then a lot of anti-trust issues would be filed against tech stocks. There is also rife speculation that the couple’s divorce could bring a 2 for 1 split in some big tech stocks like Google, and Amazon.
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