2022 will not be a good year for global tech companies.
Since the beginning of the year, the Nasdaq has fallen nearly 25%, a drop almost equal to when the dot-com bubble burst in 2000. Many market leaders in the tech space have been hit hard in this market decline, so let’s take a look at the 5 biggest losers in tech stocks so far in 2022.
Fifth place: Meta, down 43.4% in 2022
Shares of Facebook parent company Meta Platforms plummeted more than 25% on February 3, the largest one-day drop in the market value of a U.S. public company and the company’s largest one-day loss since its debut on Wall Street in 2012, when Meta’s market value evaporated more than 2,000 yuan. CEO Mark Zuckerberg’s personal net worth also shrunk by about $29 billion, a huge drop that rippled through the broader tech sector and dragged the Nasdaq Composite down sharply.
On April 28, Meta’s stock price rebounded after its earnings report, but if you look closely, Meta’s earnings data showed that they experienced the slowest revenue growth in years in the first quarter, and although profits exceeded expectations, they were down from the same period last year. 21%, and it also missed analysts’ expectations for Facebook’s daily and monthly active users. While investors found something to celebrate following the apparently mixed news and sent Meta’s shares soaring 18% in after-hours trading, they were still down 43.4% from their yearly highs – for Jan. 1 The near-half figure is still shocking for a company with a daily market value of about $935 billion.
Fourth place: Sea Ltd, down 64.38% in 2022
Shares in Sea Ltd. plunged 18% on Feb. 16 (the company’s biggest one-day drop), losing more than $16 billion in market value amid reports that India’s sudden ban on mobile game Garena Free Fire and 53 other games could be linked. India has banned hundreds of Chinese apps in the past two years, but the ban on the Sea Ltd gaming app came as a surprise to everyone, including the company, which is headquartered in Singapore but whose founders are of Chinese descent , but also backed by Chinese tech and entertainment giant Tencent.
Shares in Sea Ltd plummeted another 13% on March 1, at one point wiping $1.1 billion off the company’s chairman Forrest Li’s net worth. While Sea’s stock rose 14% on May 18 after its first-quarter revenue beat analysts’ estimates, it’s still down more than 64% from its year-to-date high.
Third place: Netflix, down 67.96% in 2022
As Netflix disclosed a sharp drop in subscribers in its first-quarter earnings report, its stock price fell 39% on April 20, falling to $212.51 at one point. It has fallen 67% this year, becoming the top performer in the S&P 500 and Nasda this year. The worst-performing stock in the gram index.
Such a steep drop shocked Wall Street as analysts found that Netflix lost 200,000 customers in the first quarter — the first since 2011, and if trends continue, Netflix is expected to lose another 2 million customers in the second quarter . According to Netflix’s disclosure in its earnings report, the Russian-Ukrainian conflict and inflation in the United States are the main reasons for its plummeting user volume. Data shows that 700,000 members have withdrawn from the Russian market.
In May, Netflix announced it was laying off 150 employees — about 2 percent of its North American workforce — mainly at its California office due to falling revenue.
Second place: Snap, down 68.21% in 2022
On the evening of May 23, Snap CEO Evan Spiegel warned that “the macroeconomic environment is deteriorating much faster than expected.” Snap also said it expects revenue and earnings to fall below the “low end” of its guidance range for the second quarter of 2022, which ends in June.
The day after the news broke, Snap’s stock plunged 43%, its biggest intraday drop ever, below its 2017 IPO price of $17.The slump wiped out nearly $16 billion of Snap’s market value and dragged down many of its peers, including social media companies such as Meta, Alphabet, Twitter, and Pinterest, causing social media stocks to lose more than $135 billion in market value on the day, with tech stocks losing ground. The main Nasdaq fell about 2.4%.
In addition, Snap has not kept pace with technological developments. According to The Verge, Evan Spiegel emphasized in the latest interview that Snapchat will not use the term “Metaverse” because it is “hypothetical” and people “actually like the real world.” . Evan Spiegel emphasizes: “The reason we don’t use the word is that it’s rather ambiguous and hypothetical. Just ask a roomful of people how they define it, and everyone’s definition is completely different. Our basic bet is that people actually like The real world: they want to be with their friends.”
1st place: Coinbase, down 71.72% in 2022
The slump in the crypto asset market has triggered a sharp drop in the market value of Coinbase, the largest U.S. cryptocurrency exchange, in 2022.
On the evening of May 10, Coinbase released its first-quarter report. The data showed that the company suffered a huge loss in performance, and its revenue fell 27% from a year ago, far below Wall Street’s forecast. On May 11, Coinbase shares plummeted and hit an all-time low.
During the week of May 4, Coinbase shares fell by more than half — from $130.15 to $53.72 on May 11.
Coinbase stock has fallen nearly 72% in 2022 and is down 81.1% from its November 2021 all-time high of $368.90. It is worth mentioning that Coinbase founder Brian Armstrong’s personal wealth was as high as $13.7 billion in November 2021, but it has shrunk to about $8 billion by the end of March 2022, but now he is worth less than $3 billion .
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-5-biggest-losers-of-tech-stocks-in-2022-meta-only-ranked-fifth-and-first-absolutely-unexpected/
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