The technology selloff is getting to be somewhat material
Tech stocks are getting hammered today, with previously high-flying shares of software companies taking even more damage.
For a sector that has enjoyed a year in the sun, recent trading sessions have punctured a period of market adoration. It is too soon to say that the market is repricing tech stocks, but the selloff has reached the point of materiality and is therefore something we need to note.
As we write, the tech-heavy Nasdaq Composite is off another 1.2% today after previous declines. The now-infamous ARK Innovation ETF is off 6.5% and the list of individual declines worth noting in the tech sector is very long indeed.
The change in sentiment is clear in recent results. Here’s the tech-heavy Nasdaq Composite:
- Nasdaq Composite recent high: 14,175.12
- Nasdaq Composite today: 12,561.13
- Percent change: -11.4%
And the damage intensifies if we consider just SaaS and cloud stocks. Here’s the Bessemer cloud index:
- Bessemer cloud index recent high: 2,884.23
- Bessemer cloud index today: 2,185.62
- Percent change: -24.2%
In more prosaic terms, the Nasdaq is in a technical correction, while SaaS stocks have reached bear-market territory. That’s quite a turnabout from recent all-time highs for both.
Not just software
Lost on the TechCrunch editing floor from late yesterday is a post we wrote noting the sharp declines in the value of insurtech stocks ahead of the impending public debut of Hippo, another neo-insurance company. The SPAC-led Hippo flotation will not touch down in a warm market. Instead, its contemporaries look like (Read more...)