Investors have been fleeing Big Tech for 'old economy' stocks. Here’s what it means for our holdings

Published Fri, Nov 11 202211:19 AM ESTUpdated Fri, Nov 11 20221:25 PM EST

The world's biggest technology companies, once the darlings of Wall Street, have lost roughly $3 trillion combined in market capitalization over the past year. Remarkably, that's after the tech-heavy Nasdaq composite surged more than 7% in Thursday's biggest market surge in two years on a cooler-than-expected, but still high, consumer price index. Many investors, facing an economic slowdown, persistent inflation, and rising interest rates, have ditched Big Tech this year for more traditional sectors like energy and consumer staples that deliver tangible goods, make a profit and return extra cash to shareholders. Thursday's rally certainly put a dent in the Nasdaq's past 12 months of losses, but the index is still down roughly 29% since last November when it made its last record high. It's a much steeper 12-month drop for the S & P 500 and the Dow Jones Industrial Average , which have fallen 15% and roughly 6.5%, respectively. It's too soon to tell whether Thursday's advances will be the beginning or the end of the bear market or just another head fake. But we do know that this earnings season has been devastating for most of the Club's tech holdings. The largely abysmal results for the last quarter led Jim Cramer to urge investors to limit their exposure to tech and semiconductor stocks . "Tech has been miserable. We said we would do some trimming, but we aren't going to be aggressive," He said recently. Jim had also been calling for Big Tech to cut their costs and reduce headcount. We've seen that start happening recently, with layoffs at Meta Platforms (META) and a hiring freeze at Amazon (AMZN). So what does the past year mean for these mega cap growth stocks that have dominated the market for so long? The market cap of the Club's five Big Tech stocks are collectively down 42% over the last 12 months, as of Thursday's close, according to FactSet. Alphabet (GOOGL) shed 37.32%, giving it a current market cap of $1.13 trillion, compared with $1.81 trillion last year. Apple's (AAPL) market cap has come down 3.73%, to $2.33 trillion, compared to $2.43 trillion a year pri