The worst six months since records began in 1970 occurred in the first half of 2022. As a result of rising inflation and weakened consumer confidence, stock prices have fallen. The worst selloff in technology equities occurred in 2022 as a result of severely deflated valuations. In the first quarter of 2022, valuations for well-known IT companies fell as a result of how the Russian war in Ukraine affected corporate operations. Growth-oriented equities are typically impacted by rising rates, and when combined with record-high inflation and gloomy consumer confidence, the sector is in for a challenging ride.
Insider Monkey highlighted 10 tech stocks that analysts are cutting the estimates on. Founded in 1998, Rackspace Technology, Inc. is a Texas company with its headquarters in San Antonio. The company was downgraded by Barclays analyst Ramsey El-Assal, which caused the stock to fall to a new low of $5.63. At the end of Q1 2022, 20 of the hedge funds monitored by Insider Monkey were positive on Nuvei Corporation, down from 24 funds the quarter before. Continuous currency fluctuation “may be an additional impact on sales in the second part of the year.” Yelp Inc. is a California corporation with its main office in San Francisco. The business runs a platform where clients can post reviews for nearby companies. Compared to 24 hedge funds in the previous quarter, 21 hedge funds were bullish on Yelp Inc. in Q1 2022. A cloud-based platform called Wix.com Ltd., which has its headquarters in Israel, enables users to build websites and web applications. Due to signs of weak demand, Morgan Stanley analysts lowered price expectations and revenue projections. A California-based business called Upstart Holdings, Inc. runs an on-demand artificial intelligence lending platform. On July 17, Ramsey El-Assal, an analyst at Barclays, decreased Upstart Holdings’ price estimate from $35 to $25. For more details, click Analysts Are Cutting Estimates On These 10 Tech Stocks.
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