Technology companies have not seen sales like in 2001 and the bursting of the dotcom bubble.
The Nasdaq was down 3.8 percent this week, falling for the seventh straight week. This is the longest series of losses for the technology index in 21 years.
Inflation, rising interest rates, the war in Ukraine and the blocking of the pandemic in China are contributing to a catastrophic market in general and a particularly brutal stretch for investors in technology and growth stocks following historic rises in recent years.
The Federal Reserve has signaled that it will continue to raise interest rates to fight inflation, leading to fears that higher capital costs will be combined with deteriorating consumer confidence to eat up profit margins.
Nasdaq lost more than 29% of its peak on November 19, closing on Friday at 11,354.62. The S&P 500 did not perform so badly, but still touched the territory of the bear market on Friday, which means a decline of 20% from its highest level.
Cisco was among the biggest losers in technology for the week, falling 13 percent after the computer networking giant predicted an unexpected drop in revenue this quarter. Once seen as a leader in the economy, given its proliferation, Cisco said its guidelines reflect the company’s decision to suspend operations in Russia and Belarus, combined with supply shortages due to the blocking of Covid-19 in China and uncertainty. when things will get better.
“Given this uncertainty, we are practical about the current environment and err on the side of caution about our prospects, accepting it a quarter at a time,” the company said in a statement.
Dell CEO Michael Dell delivered a keynote address at the Oracle Open World Conference in 2013 on September 25, 2013 in San Francisco, California.
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Dell, which reported results on Thursday, fell more than 11% for the week. Shopify, which sells software to e-retailers, fell nearly 10 percent. Cloud software company Workday fell about 9 percent after analysts downgraded stocks amid fears of a recession. Security software vendor Okta fell 14 percent.
The actions related to the billionaire Elon Musk also hit. Twitter, which is currently being bought by Tesla’s CEO for $ 54.20 a share, fell 6% this week to $ 38.29. Tesla fell 14%.
Within Big Tech, Apple fell 6.5 percent, suffering eight consecutive declines a week. Alphabet sank 6%, while Amazon fell about 5%.
Nasdaq is already down 20% for the quarter and is on track with its worst quarterly performance since the fourth period of 2008.
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