Twitter Stock- From Twitter to Palantir, tech stock losses are piled up
Big offers pile up in some of the most expensive corners of the US stock market.
Even after Friday’s backlash, it was a disastrous week for companies with the highest stock prices compared to growth expectations, thanks to employment reports that were seen as offsetting concerns about rising interest rates.
Goldman Sachs baskets on such software stocks plummeted 10%, the worst week in more than two months. Despite a particularly strong tech earnings season, the group dropped six consecutive days before the bounce on Friday and is now at its lowest level since November.
Losses weren’t limited to stocks of disappointing companies, such as financial software maker Appian Corp., which fell 27% after earnings forecasts fell below expectations. Zoom Video Communications Inc. Rival RingCentral Inc. Was down 19% even after a earnings report widely praised by Wall Street analysts. Data mining firm Palantir Technologies Inc., according to next week’s report results, fell 14%.
Willie Delwiche, an investment strategist at All Star Charts, said:
Fast-growing tech stocks have been under pressure for weeks as Treasury yields rise and rotations to cheaper sectors appear to benefit from the reopening economy.
Exchange-traded funds tracking North American software companies fell 11% from their February peak. The S & P 500 Index rose nearly 7% during that period, driven by energy, financial and materials stocks.
Even dip buying from Cathie Wood’s Ark Investment Management LLC wasn’t enough to undo the damage to some stocks. A well-known money manager was confiscated on Twitter Inc., Skillz Inc., and Palantir for a recent sale of shares.
“The tech name is very vulnerable because it was so expensive last year,” said Scott Knapp, chief market strategist at CUNA Mutual Group. “You see rotation happening, and the extremes that growth and value are modifying are pretty extreme.”
Take Twitter as an example. Equities have lost more than 30% of their value since their peak in March, and many of the declines have come after disappointing earnings forecasts. Stocks are currently down in 9 of the last 10 trading sessions. Twitter’s share price fell 0.04% on Friday to $ 53.79, 11 times higher than sales.
Don Calcagni, Chief Investment Officer of Mercer Advisors, has about $ 28.5 billion in assets under management, and in an environment where growth isn’t so focused, “. .. Twitter’s rating says, “Especially in environments where revenue is more important, it remains fairly substantive and needs to drop significantly to be justified.”
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The sale was not indiscriminate. The largest tech company in the United States, which exceeded last week’s revenue and revenue estimates, was relatively intact. Microsoft Corp. Made a profit this week. Google’s parent company Alphabet Inc announced a $ 50 billion share buyback approval last week. Was down 0.1%. Apple Inc promised a $ 90 billion buyback last week. Was down 1%.
For some analysts, the combination of good performance and post-sale prices generally provides an opportunity to buy back some of these shares. In particular, companies whose revenue growth is ready to cross the wider market in the coming years.
Ross Mayfield, Investment Strategy Analyst at Robert W. Baird & Company, said: ..
http://www.luxtimes.lu/en/business-finance/from-twitter-to-palantir-losses-in-technology-stocks-stack-up-60963779de135b9236c4ef3f From Twitter to Palantir, tech stock losses are piled up