Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

This year’s hottest technology IPOs are having a difficult day

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

RELATED POSTS

Used vehicle prices swing higher amid unseasonably strong demand in January

Billionaire Tesla bull Ron Baron says Musk promised him multiples on his $100 million Twitter stake

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 into the negative. Meanwhile, the S&P 500 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 7% in afternoon trading. Roblox, which benefitted from rising interest in the metaverse was down about 9%.

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 12% 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 20%, and DoorDash and Airbnb both sank 7% on Monday afternoon.

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 were down about 5% and 7% respectively on Monday.

ShareTweetPin

Related Posts

Used vehicle prices swing higher amid unseasonably strong demand in January

by
February 7, 2023
0

A man shops for used vehicles at the Toyota of Deerfield dealership in Deerfield Beach, Florida. Getty Images DETROIT -...

Billionaire Tesla bull Ron Baron says Musk promised him multiples on his $100 million Twitter stake

by
February 7, 2023
0

In this article TSLA Follow your favorite stocksCREATE FREE ACCOUNT Billionaire Ron Baron was promised he would make "two to...

Used vehicle prices swing higher amid unseasonably high demand in January

by
February 7, 2023
0

A man shops for used vehicles at the Toyota of Deerfield dealership in Deerfield Beach, Florida. Getty Images DETROIT -...

Biden plans to go after social media and kids’ mental health in SOTU speech

by
February 7, 2023
0

U.S. President Joe Biden speaks as he attends the DNC 2023 Winter Meeting in Philadelphia, Pennsylvania, U.S., February 3, 2023....

Powell’s speech triggered record options bets, topping even the meme stock frenzy

by
February 7, 2023
0

A speculative frenzy after Fed Chairman Jerome Powell spoke last week helped drive record trading in call options Thursday, and...

Next Post

November 22nd COVID-19: New Cases and Hospitalizations Increasing

Rivian Stock Is Giving Up Its Gigantic IPO Gains. Blame Ford and Tesla.

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!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com