[Poison Pill]

This is stupid. Why should other tech stocks be dragged down except maybe Google who is as dishonest as Facebook and deserve bankruptcy.

Because all these like companies are bound up in Exchange Traded Funds. If FB goes down, then it drags the fund down. Then someone sees their fund go down and they get jittery and sell and the fund goes down more. It becomes self reinforcing, at least in the short term.

[mdittmar]

"Then someone sees their fund go down and they get jittery and sell"

Yep,they sell low and buy high;)

[proxy_user]

Such widespread selling in tech would take down the S&P 500. Then index-fund holders will get nervous and start selling too.