Hammered by a slew of macroeconomic headwinds including historically high inflation, rate hikes and slowing economic growth this year, the tech selloff has left investors wondering whether there are still opportunities in the sector, especially amid recessionary concerns.
The tech-heavy Nasdaq 100 index and the Dow Jones US Technology Index are down 23% and 22.6% respectively as at June 8, on the back of macroeconomic headwinds. This follows a year of outperformance of tech companies, as it sees a meteoric rise in valuations up until late-2021.
Video-streaming platform Netflix is one of the stocks that are hit hard this year. Driven by pandemic-related trends, Netflix’s share price almost reached an all-time high of US$700 ($962.47) last year before plunging 67% year to date to US$200. Meanwhile, other tech giants such as Apple, Tesla, Amazon and Alphabet also took hits.