Monday’s Headlines: Tech’s On A Losing Streak

Monday’s Headlines: Tech’s On A Losing Streak

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️

Avalara (AVLR) +12.1%

2U (TWOU) +11.0%

Texas Roadhouse (TXRH) +7.0%

Monster Energy (MNST) +4.4%

Redfin (RDFN) +3.5%

Moving Down ⬇️

Under Armour (UAA) -23.8% (BILL) -20.5%

GoPro (GPRO) -18.3%

Cloudflare (NET) -15.7%

Tripadvisor (TRIP) -11.4%

1. The Nasdaq Composite (QQQ) declined for a fifth straight week — falling 1.40% to 12,144.66 on Friday — marking its longest weekly losing streak since 2012. This comes after the Federal Reserve raised interest rates by 0.5% last Wednesday and warned again of “much too high” inflation, which rattled markets, causing the Nasdaq to plunge by over 5% on Thursday. The tech-heavy index’s woes represent a significant shift in investor sentiment toward growth stocks as inflation concerns, the central bank rate hikes, and worries about deteriorating economic conditions affecting consumer spending are forcing investors to reassess some of the most high-flying stocks over the past few years. Read more here.

2. Despite its metaverse aspirations, Meta Platforms (FB) is opening up its first-ever physical retail store to sell — *checks notes — virtual reality headsets… Once you’ve wrapped your head around that particular oxymoron, you’ll realise that the move is not without sense, considering that 26% of teens say they own a virtual reality headset, a level of VR device ownership that is higher than many expected. Gaming, already at $200 billion in annual revenue with an estimated three billion players globally, is a natural on-ramp for Gen Z and subsequent generations who will have exclusively grown up in the digital world. With Meta prepared to lose $10 billion on its hardware division, Reality Labs, this year, it looks like it’s going all-in on this diversification. Read more here.

3. Following a less-than-stellar start to public life for Rivian (RIVN), Ford (F) is dumping 8 million of its shares in the electric vehicle manufacturer. It’s not all bad though as this simply represents a fraction of the 102 million shares owned by Ford, and will be sold via Goldman Sachs, sources said. Shares of the EV manufacturer have plummeted by more than 50% in the first three months of 2022, reversing course from the fourth quarter, when the company held its stock market debut and saw its value skyrocket. Now, with Ford pumping its EV ambitions with billions of dollars this decade, it may not need as much of a stake in smaller players as it seeks to supplant Tesla (TSLA) as EV’s kingpin. Read more here.

Get this week’s full earnings calendar here.