![]() ![]() ![]() Lucky for us, many of these companies have just released their Q2 earnings reports, giving us a fully up-to-date look at how their businesses have coped with the recent economic downturn. Checking the report cardsĪnother time-tested way to sort the wheat from the chaff when bargain hunting in the Nasdaq is to look at fundamentals. It may well be impossible to call a bottom or top, but you may see when the market is offering you a relatively prospective deal. As we begin to see the downtrend decelerate and the beginnings of a reversal take shape, long-term investors should perhaps consider picking up the likes of TSLA, AMZN, NFLX and META at a nice 30-40% average discount on all-time highs. That said, there were naturally some companies that were likely to revisit these heights eventually (such as Tesla, Meta and Amazon) and others that were just riding the hype train without a ticket (Block Inc, Sea Group and Shopify). Price-to-earnings ratios in the high hundreds were commonplace, and it was clear that a correction was a matter of when not if. ![]() Throughout the pandemic, analysts, commentators and just about everyone with a modicum of sense were saying how overvalued the stock market was. People often say hindsight is 20:20, but it didn't take an oracle to predict the crash we've seen in the first half of this year. In this article, we'll look at the latest developments influencing US tech stocks as we try to determine whether a trend reversal is on the cards. A number of less famous names have been hit even harder, with some firms having up to 90% of their value wiped away since November 2021. While there are, of course, cyclical and macroeconomic factors affecting virtually the entire global market, the story surrounding US Big Tech is a unique one. Liquidity was flowing in from all sides, and it looked as if companies like Tesla, Netflix, Meta and their like were about as close to a sure thing you could find.įast forward to today, and all of these shares are down 30-60% in the past six months. ![]() Back in the age of the meme stock, it seemed like the bull market would never end. Many of us will remember equities' heady heights of 20 with nostalgia. ![]()
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