Scottish Mortgage Investment Trust PLC (LSE:SMT) fell 5.4% on Friday in response to an epic rout in US-listed technology shares including Amazon.com Inc (NASDAQ:AMZN) and Nvidia Corp.
FTSE 100-listed SMT’s portfolio primarily consists of tech megacaps, with Nvidia comprising 9.4% of its portfolio and Amazon 5.8%.
Both company valuations collapsed in the tens of billions today amid a broad sell off in the tech sector following a mixed earnings season.
Dutch semiconductor technology giant ASML Holdings NV, which is SMT’s largest investment after Nvidia, joined the rout with a 9.6% share price collapse.
Amazon truly bore the brunt of the sell off though, with the e-commerce and cloud-computing giant falling 10.7% in early trading, thus removing some $200 billion from its valuation.
SMT is buttressed somewhat by its significant stakes in unlisted companies including SpaceX and TikTok owner Bytedance.
This has caused controversy in the past for a lack of transparency in these companies’ underlying worth, but with public market markets in disarray, it could be a momentary blessing.
SMT shares were swapping or 805.6p at the time of writing.
FTSE 250-listed Allianz Technology Trust PLC (LSE:ATT), another prominent London-listed US tech investor with stakes in most major US tech megacaps including Nvidia, Microsoft, Meta, fell a full 7%.