The current year appears to be a terrible one as far as technology stocks are concerned. The tech bourse, NASDAQ witnessed a 12.9% drop this year alone as some of the leading companies were seeing major downside pressures. The falling trend has been widespread in the last few weeks after reports of a slowdown in China. It was not just the listed companies, but even the privately held tech shares valuation were also getting hammered.
Some Of The Stocks In The Negative Territory
There are some shares in the negative territory for the year to date. LinkedIn Corp (NYSE:LNKD) shares plummeted by over 51% while Fitbit Inc (NYSE:FIT) shed 47% in the current year. Another major tech stock, Twitter Inc (NYSE:TWTR) lost 32%, and Workday Inc (NYSE:WDAY) fell 16.35%. Also, three of the four FANG stocks were underwater. They are Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Alphabet Inc (NASDAQ:GOOGL) were in the red while Facebook Inc (NASDAQ:FB) is at a break-even point. Apple Inc. (NASDAQ:AAPL) is also in the red only for the current year and its results will provide further direction.
There are already slogans as far as the last year and current year is concerned with some viewing the year 2015 as unicorns whereas the current year is termed as the magical glue. Current market conditions are worrying Wall Street to the point swhere many analysts are already drawing comparisons to the dot com boom-bust of 2001-2002.
Losses Are Evenly Distributed
There is, at least, one difference in the current free for fall tech stocks. The losses are widespread and evenly distributed unlike the previous bubble. For instance, Nasdaq witnessed 53% drop between the year 2000 and the year 2002. In the same period, the other two broader indices, S&P500 and the Dow Jones Industrial Averages’ witnessed a downtick of 22% and 13% respectively.
In the current bear phase, the S&P 500, as well as, the Dow Jones dropped by over 8% each. However, the loss was considered small considering Nasdaq shed 12.9%. There were also not many differences between the three major indices between the years 2007 and 2009.
