(Newswire.net — June 26, 2016) — U.S. Companies that have operations in Britain, lost billions after the Pound Sterling plunged to a historical low after the Brexit referendum results came in.
The market disturbance showed that Britain leaving the EU is not only Britain’s problem, but it sends waves worldwide. Big U.S. companies such as online advertising company Alphabet (GOOGL), software maker Microsoft (MSFT), Apple Inc, Amazon and global bank JPMorgan Chase suffered a loss of $657 billion in market value in just one day, USA Today reported.
Analyzing the data from S&P Global Market Intelligence, USA Today reported that Alphabet, the parent company of Google, was the company to suffer the biggest blow, losing over $20 billion. However, the company is so big that the market drop won’t jeopardize it’s business.
15 U.S. stocks got absolutely crushed by Brexit. Money management firm Invesco (IVZ), auto-parts maker Delphi Automotive (DLPH) and global financial Morgan Stanley (MS), closed down 10% or more Friday.
These U.S. companies lost the most in market value by Brexit, according to S&P Global Market Intelligence (in $ billions):
Alphabet, GOOGL, – $20.4
Microsoft, MSFT, – $16.4
JPMorgan Chase, JPM, -$16.3
Berkshire Hathaway, BRKA, – $14.8
Apple, AAPL, – $14.8
General Electric, GE, – $12.6
Citigroup, C, – $12.2
Wells Fargo, WFC, – $11.2
Amazon.com, AMZN, – $10.9
Bank of America, BAC, – $10.7
The world’s 400 richest people lost $127.4 billion on Friday as a result of Britain’s vote to leave the EU, Bloomberg reported. According to the Bloomberg Billionaires Index, Amancio Ortega, Europe’s wealthiest person, experienced the biggest loss, losing $6 billion, unlike Bill Gates and Jeff Bezos who lost “only” about $1 billion.
UK’s wealthiest person, Gerald Cavendish Grosvenor, also lost around $1 billion, Bloomberg reported.
The dramatic drop of shares, on the other hand, shows the danger in globalization, showing that a single event can send shockwaves through linked businesses, which costs U.S. investors serious money and reduces the value of U.S. companies, USA Today noted