Tech stocks are also seen today, along with the first high-flying stocks of software companies.
For a sector Have enjoyed a year in the sun, Recent trading sessions have halted the market entry period. It is too early to say that the market is reprising tech stocks, but the selloff has reached a point of materiality and hence we need some attention.
As we write, the tech-heavy Nasdaq Composite is up more than 1.2% today after the previous decline. The now infamous ARK Innovation ETF is off 6.5% and the list of individual declines noticeable in the tech sector is too long.
A change in sentiment is evident in recent results. Here is the tech-heavy Nasdaq Composite:
- Nasdaq Composite 52-Week High: 14,175.12
- Nasdaq Composite Today: 12,561.13
- Percent change: -11.4%
And the loss intensifies if we consider just SaaS and Cloud stock. Is here Bessemer Cloud Index:
- Bessemer Cloud Index 52-Week High: 2,884.23
- Bessemer Cloud Index Today: 2,185.62
- Percent change: -24.2%
In more legal terms, Nasdaq is in a technical correction, While mother-in-law stocks have reached bear market Area. This is a change from recent all-time highs for both.
Not just software
There is a lost post on the TechCrunch editing floor late yesterday that we wrote about noting a sharp decline in the value of Insercheck shares ahead of the imminent public debut of another neo-insurance company, Hippo. The SPAC-led hippo flotation will not go down in a hot market. Instead, its contemporaries today look like this:
- Lemonade 52-Week High: $ 188.30
- Lemonade current price: $ 84.72
- Change: -55.0%
- Route Insurance 52-Week High: $ 29.48
- Route Insurance Current Price: $ 12.38
- Change: -58.0%
- MetroMile 52-Week High: $ 20.39
- MetroMile current price: $ 10.04
- Change: -50.8%
The damage is extensive. Hale, a recent IPO success story Snowflake, announced yesterday that it had grown from revenue of $ 88 million in its most recent quarter to $ 190 million in its previous quarter. And its stock is Close Today over 7%.
We will leave it up to you whether the changing public valuations are just a stigma or more changes in the winds. But it feels different there.
For startups, all this is shoddy news. Prices for public comps were strong in 2020. To lose that aura in 2021, it is possible to sum up the late-stage valuation, perhaps reaching back to the Series A and B rounds to limit some upside for the rising upstart. But such an effect will cause a decline in public markets, so don’t expect things to change yet.
Nevertheless, every private investor has his eyes on the deal. And if that exit is suddenly shrinking, they may be interested in paying a very good markup on their next deal.
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