Tech sell-off gets Nasdaq to the lowest drop since June 2020

Tech sell-off gets Nasdaq to the lowest drop since June 2020

May 10, 2022: -On Thursday, Cloud companies, e-retailers, and household tech names got hammered, which wiped out hundreds of billions of dollars in market value and pushed the Nasdaq Composite to its lowest since June 2020.

After the Federal Reserve increased its benchmark interest rate by a half-point to stem increasing inflation, investors sold out of the part of the market that’s viewed as the growth driver on concerns that the economy is in for some dark times ahead.

Big Tech suffered a tremendous sell-off, with Amazon sinking nearly 8% and Facebook owner Meta Platforms off nearly 7%. Among other big names, such as Apple dropped by almost 6%, Google parent Alphabet sloped by about 5%, and Microsoft shares came down by 4%. Overall, the Nasdaq plunged 5%.

Investors were particularly down on e-commerce after Shopify, which ballooned during the pandemic by helping physical retailers go digital, reported disappointing first-quarter earnings and revenue. eBay and Etsy mourned double-digit declines following their earnings reports. The stock plunged 15%.

The rotation out of tech started in belatedly 2021 as soaring inflation. The threat of rising rates led investors to areas of the economy deemed safer, like energy and financial services. A further blow came with Russia’s invasion of Ukraine in February, which sent energy prices higher and heightened concerns about supply chain restrictions and weakening business conditions in numerous parts of the world.

The first quarter of the year was the worst period for the Nasdaq since the same three months in 2020 when the early days of the pandemic spurred an economic shutdown. The tech-heavy index fell 9.1% during the first quarter. Less than halfway through the second quarter, the Nasdaq is now down 21%.

Cloud stocks, which again became a favorite during Covid as corporations tapped services they could use remotely, were struck on Thursday. Bill-payment software developer Bill.com noticed shares plunge 13%, while project management software company Asana’s stock dropped 11%.

The WisdomTree Cloud Computing Fund was down nearly 8%, its steepest daily decline since September 2020.

For certain Covid winners such as Netflix, Zoom, Peloton, and Twilio, the reversal of fortune has been even better dramatic than the run-up. They are down more than 45% year to date, and their slumps deepened Thursday.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

The Lake Companies | Making Manufacturing Easier…Forever! | Greg Lake

The Lake Companies knows that to achieve best practices, specific daily business processes must happen and be done as simply as possible, even without human effort. “That’s how we develop our ERP software products. We strive to completely transform internal business processes and revolutionize the user experience with our software,” says Greg Lake, President of The Lake Companies. “Building the support for best practices in our software allows our customers to achieve far more than they anticipated, while paving the way for growth into advanced IoT and Industry 4.0 technologies. Our Simple, Elegant, and Powerful solutions are built specifically for and seamlessly integrate with Infor’s SyteLine®(CloudSuite®) ERP.”

Omron Automation | A Leading Solution Provider in Industrial Automation | Robb Black

Omron Automation Americas is a division of Omron, an industrial automation leader that creates, sells, and services fully integrated automation solutions including sensing, control, safety, vision, motion, robotics, and more. Established in 1933, Omron’s team of more than 30,000 employees helps businesses solve problems with creativity in more than 110 countries around the world.

Gecko Robotics | Transforming the Manufacturing Industry | Ed Bryner

Sitting in the decommissioned elevator shaft of an old industrial warehouse in the historic Point Breeze neighborhood of Pittsburgh, PA, Ed Bryner and a small team of mechanical engineers watch a robot scale old, rusted piping.
Using Industrial Automation to Revitalize Infrastructure
“We rely so heavily on so many of these industrial assets and a lot of them are getting really old,” said Bryner, Director of Engineering at Gecko Robotics. “You see it with bridges and roadways. But buildings, power plants, pipelines, and more need a lot of infrastructure inspections, too.”

Exel Computer Systems PLC | Offering A Comprehensive & Flexible Business Solution | Rue Dilhe

Exel Computer Systems plc was established in 1985, and today, the company is a leading force in providing comprehensive, AI-enabled solutions for manufacturing companies and field service providers. Exel serves an increasingly diverse customer base, which includes small, medium and large size companies. With hundreds of successful implementations and thousands of users in the UK and worldwide, Exel has a proven track record of working with some of the world’s most well-known companies.

Micro Estimating Systems, Inc | Empowering Manufacturers to Make Informed Decisions | Joseph Rose

Manufacturers often struggle with generating accurate and timely quotes, delaying customer responses and risking profitability. Traditional quoting processes can take days or even weeks, while customers expect responses within 24 hours. Micro Estimating Systems addresses these challenges with advanced software that allows users to generate highly accurate quotes in minutes. By integrating with shop-specific data and automating feature recognition, their solutions ensure precision and speed, empowering manufacturers to make informed decisions and enhance their operational efficiency.

Tech sell-off gets Nasdaq to the lowest drop since June 2020