Home Finance News Tech stocks continue downward trend following their worst month in 2023.

Tech stocks continue downward trend following their worst month in 2023.

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Tech stocks continue downward trend following their worst month in 2023.

The Nasdaq experienced a 1.9% decline on Tuesday, contributing to a broader market downturn driven by concerns over increasing interest rates. This negative trend is particularly impacting tech stocks, which suffered their worst month of the year in September and are struggling at the start of October. The Nasdaq is now trading at its lowest level since May, even though it is still up 25% for the year.

One major tech stock, Airbnb, saw a 6.5% drop in its shares after KeyBanc analysts downgraded their rating on the stock. The analysts adjusted their earnings expectations through 2025, anticipating a decline as consumers shift back to buying physical goods. This downgrade is causing concern about the company’s potential growth in room nights and experiences, as well as its average daily rate.

Among the mega-cap tech companies, Amazon experienced the biggest decline, with a 3.7% drop in its stock. This decline follows a disappointing month for Amazon, as the company faces the possibility of a disappointing holiday shopping season and a massive antitrust lawsuit from the Federal Trade Commission. Microsoft also slid 2.6%, while Meta fell 1.9%. The larger concern driving the sell-off is the spike in interest rates, which is causing investors to shift away from riskier assets like tech stocks.

In summary, tech stocks, including Airbnb, Amazon, Microsoft, and Meta, are facing a challenging market environment due to rising interest rates. The Nasdaq has experienced a significant decline, reaching its lowest level since May, and tech stocks are struggling to recover from their worst month of the year in September. The downgrade of Airbnb shares by KeyBanc analysts and concerns over Amazon’s holiday season performance and antitrust lawsuit are adding to the overall negative sentiment in the tech sector.

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