This CNBC article highlights some of the biggest losers…
Published by CNBC on 7 March 2022
- High-growth tech stocks were already getting pummeled before Russian’s invasion of the Ukraine. The skid has only gotten worse.
- “The mood of the market right is real foul right now for good reasons,” Snowflake CEO Frank Slootman told CNBC’s “Mad Money” last week.
- The selloff has hit cloud software, e-commerce, fintech and consumer devices.
People wait in line for t-shirts at a pop-up kiosk for the online brokerage Robinhood along Wall Street after the company went public with an IPO earlier in the day on July 29, 2021 in New York City.
Spencer Platt | Getty Images News | Getty Images
Macro conditions were already troubling for tech. With inflation at a 40-year high and the Federal Reserve signaling a series of interest rate hikes on the horizon, investors started the year by fleeing growth stocks, sending the Nasdaq in January to its worst month since March 2020, the early days of the pandemic.
Snowflake is more than 50% off its 52-week high reached in November. That makes the company a relative safe haven compared to wide swaths of the tech industry. Numerous stocks have lost at least three-quarters of their value since peaking in late 2021, and some well-known names are down 90% or more.
Discount mobile commerce app Wish has struggled since shortly after its IPO in December 2020. The stock priced at $24 and got as high as $32.85. But it’s now trading at $1.99, and is more than 90% below its intraday 52-week high from almost a year ago.
In 2020, Stitch Fix more than doubled in value, driven by the broader surge in e-commerce stocks. Since January 2021, the shares have been on a downward trajectory. They’re down 85% from a year ago, the 52-week high, and over 90% from a record a couple months earlier.
Workout bike maker Peloton became a pandemic darling in 2020. That was a long time ago.
TV unit sales have declined in the U.S. as device manufacturers have run into shortages. Roku is eating the costs rather than passing them to customers.
If you’ve eaten under a heat lamp at a neighborhood eatery in the past couple years, you’ve probably become familiar with the name Toast. The company grew up by providing point-of-sale software and hardware to restaurants and emerged as an industry heavyweight during the pandemic by helping customers transition to a world of contactless ordering and payments.
Please note the above article was first published by CNBC and should not be regarded as individual investment advice on whether to buy, sell or hold the companies mentioned in this article. Please speak to Ethical Offshore Investments (or your personal adviser) BEFORE you make any investment decision based on the information contained within this article.
At Ethical Offshore Investments, we can provide guidance on a range of Fund Managers that offer exposure to high growth potential companies. As we aim not to use commission paying funds, we will access the lowest charging version of the managed fund that is available on the relevant platform…… resulting in more of the investment growth staying in your pocket.
We will also NOT CHARGE any additional entry and/or exit fees to purchase these funds for our clients.
If you would like to learn more on the range of high growth potential funds, with a bias towards investing in companies focused on Technology, Cyber Security, Software as a Service (SaaS), FinTech, Healthcare and Biotechnology, please click on the More Information button below and we will contact your personally.
Socially Responsible Investing – Ethical Business Standards