Shares of Apple and Google just had their worst week in more than two years

Shares of Apple Inc. and Alphabet Inc. suffered their biggest weekly declines since the early days of the pandemic this week as big tech companies continued to draw closer scrutiny from Wall Street.

Apple shares
AAPL,
-0.19%

ended the week down 11.2%, its worst weekly performance since the week ended March 20, 2020, according to Dow Jones Market Data. The stock fell 17.5% during the early part of the pandemic.

Apple shares fell in all five sessions this week.

Share on Google-parent Alphabet
GOOG,
+3.84%

GOOGLE,
+3.78%

fell 10.1% on the week, their worst one-day percentage decline since the same week on March 20, 2020, when they fell 12.03%. The stock’s biggest weekly drop in more than two years came even as Alphabet snapped a four-day losing streak in Friday trading.

Although Apple’s stock has outperformed Alphabet and other big tech companies, the company faces potential pandemic challenges due to new COVID-19 setbacks in the main facility of the manufacturer Foxconn. In addition, the realities of the current economic climate may be catching up with Apple, as Bloomberg News reported Thursday that the company had hiring pause in several non-R&D areas.

See more: Apple reportedly halts hiring for many positions, joining Amazon in belt-tightening

While there didn’t appear to be any big news specifically tied to Alphabet this past week, investors are putting more pressure on the big internet companies, according to Bernstein analyst Mark Schmulik. He recently conducted major technological “autopsy” from the results of Alphabet, Amazon.com Inc.
AMZN,
+1.88%
,
and Meta Platforms Inc.
META,
+2.11%
,
concluding that “excellence is required from here” for the three tech giants as Wall Street has less patience for poor performance in any of their many business areas.

Read: Amazon closes below $1 trillion valuation for first time since 2020

All three names suffered negative stock market reactions after their latest earnings reports pointed to challenges in the advertising market due to economic pressures. At Alphabet in particular, “Demand was more or less in line with buy-side scares and cloud momentum, but disappointing YouTube results combined with margin squeeze led to a ~10% after-hours decline,” Shmulik wrote .

Alphabet’s shares are down 40% so far in 2022, while Apple’s are down 22% over the same period. S&P 500
SPX,
+1.36%

is down 21% year over year, while the Dow Jones Industrial Average
DJIA,
+1.26%

is reduced by 11%.

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