• Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Dividend Stocks Report
No Result
View All Result
Home Stock News

This year’s hottest technology IPOs had a difficult day

by
November 22, 2021
in Stock News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

Facebook co-founder funds research into cooling the Earth with sunlight reflection

Who is Bryan Bottarelli from Monument Traders Alliance?

Chipotle Mexican Grill misses expectations for earnings, revenue and same-store sales

Microsoft CEO Nadella calls A.I.-powered search biggest thing for company since cloud 15 years ago

A Rivian R1T electric pickup truck during the company’s IPO outside the Nasdaq MarketSite in New York, on Wednesday, Nov. 10, 2021.

Bing Guan | Bloomberg | Getty Images

Some of the year’s hottest tech IPOs including Rivian, Affirm and Roblox plummeted in the market on Monday, as the tech-heavy Nasdaq sank more than 1%. Meanwhile, the S&P 500 closed down slightly negative and Dow Jones Industrial Average stayed positive, an indication that investors are rotating out of the tech industry.

While there’s no clear-cut reason for the sell-off, stocks that had some of the biggest rallies this year are feeling the pinch. Affirm, which has seen rapid stock growth amid its new partnership with Amazon dropped more than 9%. Roblox, which benefitted from rising interest in the metaverse closed down almost 11%.

The sell-off in electric vehicle-maker Rivian, which was valued ahead of Ford and General Motors after its market debut and is slated to rival Tesla, continued on Monday. Its stock dropped more than 8% as investors continue taking profits.

Fear of higher interest rates, which generally means a reduction in expected earnings growth for investors, could be one contributor to the sell-off. Yet, President Joe Biden nominated U.S. Federal Reserve Chairman Jerome Powell for a second term on Monday and the first Fed rate hike isn’t expected until summer 2022 at the earliest.

Amid rate potential hikes, Goldman Sachs analysts urged portfolio managers in a Nov. 19 note to focus on “growth stocks with elevated current profitability” and steer clear of fast-growing firms valued entirely on long-term growth expectations.

“Our recommendation is to avoid fast-growing firms valued entirely on long-term growth expectations, which will be more vulnerable to the risk of rising interest rates or disappointing revenues,” analysts wrote. “In contrast, growth stocks with elevated current profitability have comparatively shorter durations, and therefore are less exposed to the risk of rising interest rates.”

Some of those technology companies cited with high profitability and fast expected revenue growth included Palantir, Zoom, Meta and Alphabet.

Some of the biggest IPOs of 2020 are also feeling the pinch. Asana plummeted almost 23%, DoorDash dropped about 6% and Airbnb sank 7% Monday.

A rotation out of tech stocks earlier this year pummeled cloud stocks like Fastly and Snowflake as investors moved into financials and commodities stocks that typically outperform during inflationary periods. Both stocks closed down about 6% and 9% respectively on Monday.

Next Post

Cathie Wood is backing up the truck on these 3 growth stocks — should you?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Stock News

Facebook co-founder funds research into cooling the Earth with sunlight reflection

by
February 8, 2023
0

This photograph taken on May 11, 2022 shows Shivaram, a villager walking through the cracked bottom of a dried-out pond...

Read more

Facebook co-founder funds research into cooling the Earth with sunlight reflection

Who is Bryan Bottarelli from Monument Traders Alliance?

Chipotle Mexican Grill misses expectations for earnings, revenue and same-store sales

Analysts love these stocks with big upside to play the ChatGPT-driven artificial intelligence craze

Microsoft CEO Nadella calls A.I.-powered search biggest thing for company since cloud 15 years ago

Stocks moving in after-hours: Chipotle, VF Corp, Fortinet, Enphase Energy

Load More

All rights reserved by www.dividendstocksreport.net

  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.