Tech Stocks Have Had Their Worst Week Since March 2020

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Peloton fell below its IPO price, Netflix suffered its steepest drop in a decade, and chip stocks continued to struggle. Nasdaq also closed out its worst week since the start of the pandemic.

At Friday’s close, the Nasdaq was down 7.6% for the week, its biggest decline since March 2020, when global markets sank on Covid-19 concerns.

“As we discussed last quarter, we are taking significant corrective actions to improve our profitability outlook and optimize our costs across the company,” Peloton Chief Executive Officer John Foley said in a statement. 

Tech stocks just had their worst week since March 2020 as Peloton and Netflix  scared investors | Business News

Peloton shares plummeted 24% on Thursday before a partial rebound on Friday left them down 14% for the week. The stock closed at $27.06, below its $29 IPO price from 2019.

The company stated that it expects to add 2.5 million subscribers during the first quarter of 2022, far below analysts’ estimates of 6.93 million, according to Street Account. The stock fell 22% on Friday, the steepest drop in almost a decade, and slid 24% for the week.

Intel suffered the largest drop this week, falling 6.6%. AMD, Qualcomm , and Nvidia each dropped more than 12%.

Supply chain constraints continue to be a problem, and investors expect some troubling forecasts on device sales as earnings trickle out.

Peloton plunge, Netflix miss send Nasdaq to worst week since March 2020

AMD is scheduled to report fourth-quarter results on Feb. 1.

“We do not see the company missing estimates over the next two quarters, but ultimately, we do see a combination of slower growth and a slowing PC environment burdening the stock,” Piper Sandler wrote.

For the year, the Nasdaq is down 12%, losing to the S&P 500, which has dropped 7.7%, and the Dow Jones Industrial Average, which has fallen 5.7%. In 2021, the Nasdaq lagged the S&P for the first time since 2016.

The S&P hasn’t beaten the Nasdaq in two consecutive years since 2006 (when it finished a three-year run ahead of the Nasdaq). 2022 is going to be a little unpredictable in these terms. Only time will tell how the stocks will look.

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