Some tech shares were down 75% from their highs the previous year
Key takeaways:
- High-growth tech stocks were already getting beaten before Russia raided Ukraine. The skid has just gotten more destructive.
- “The mood of the market right is real foul right now for good causes,” Snowflake CEO Frank Slootman informed CNBC’s “Mad Money” the previous week.
- The selloff has struck cloud software, e-commerce, fintech, and customer devices.
Tech stocks hit by the Russia-Ukraine war:
Macro conditions were already agitating for tech. With inflation at a 40-year high and the Federal Reserve indicating a string of interest rate climbs on the horizon, investors began the year by flying increase stocks, sending the Nasdaq in January to its most destructive month since March 2020, the early days of the pandemic.
Over the previous three weeks, the outlook has moved from poor to substantially worse. The prior month, Russia’s attack on Ukraine banged an already weak stock market, sprinkling geopolitical unrest into the hash of volatility.
Oil costs just grew to their highest in over 13 years, and other commodity costs are on the hill on supply problems as Russia is a crucial maker of wheat, palladium, and aluminum.
Energy and utilities are the best places in the U.S. where investors find ease. While everything else is getting struck, the highest-growth tech stocks verify unpalatable to all but the most dynamic industry bulls.
“The mood of the market is simple foul right now for exemplary reasons,” Snowflake CEO Frank Slootman informed CNBC’s “Mad Money” on Wednesday. Stocks of the cloud data analytics seller dropped even though earnings beat assessments and the firm gave an optimistic prediction.
Snowflake is almost 50% off its 52-week high reached in November. That makes the firm a comparative haven compared to vast swaths of the tech industry. Multiple stocks have lost at least three-quarters of their worth since peaking in late 2021, and some renowned names are down 90% or more.