It is reported that since 2022, in the U.S. capital market, technology stocks have suffered heavy losses in all aspects, and one kind of technology stocks has been "injured" the most, that is, the new technology stocks listed last year. According to the statistics of the US financial media, the 53 technology companies listed on the US stock market last year (including public offering and direct listing). Except for 3, the current share prices of the other 50 companies are lower than their offering price (IPO mode) or first day trading price (direct listing mode), accounting for 94%.
More than half of the newly listed technology stocks fell by more than half, including some well-known companies, such as coinbase, a virtual currency trading tool, Robinhood, a commission free stock speculation tool, rivian, a pure tram manufacturer, uipath, a cloud computing software provider, and marquta and toast, Internet financial technology companies. These well-known companies have evaporated 60% of their capital market value.
The slump in technology stocks began at the end of last year. With the increasing inflation in the United States and the expectation that the Federal Reserve will raise interest rates, investors began to sell off some high-risk stocks, including technology stocks with high price earnings ratio.
As the conflict between Russia and Ukraine continued, the selling tide of technology stocks intensified in February this year and entered the stage of panic selling last week. Last week, the Federal Reserve announced that it would raise the federal funds rate by half a percentage point and made some comments on interest rates, which had a huge impact on the capital market.
On Monday, the NASDAQ fell 4.3%, and the latest index hit its lowest level since the end of 2020. On Friday, the NASDAQ index fell for the fifth consecutive week, the longest consecutive decline since 2012.
For current investors, what they are least interested in is the IPO. In the first four months of this year, the IPO market was very depressed. In the second quarter of this year, there were no bright spots in the newly listed technology stocks.
Some technology companies originally planned to be listed in the first half of this year, but they are likely to make adjustments in the face of the downturn in the capital market. These companies used to absorb the capital of venture capital companies, and the financing P / E ratio reflected the past capital market conditions. At that time, American technology stocks were at the end of a decade of rising channel.
If they choose to go public now, these technology companies need to completely reassess their business models. In addition, the shares held by later investors and employees may be worthless.
Among American technology companies, instacart is the only one that publicly acknowledges the devaluation of market value. In March, the company announced that it would cut its capital valuation by 40%, leaving only $24 billion. Through this operation, the company can provide stock or option awards to employees and candidates at a lower price in the future.
For a long time, technology stocks have become the stars of the U.S. capital market, rising all the way. With the current selling climax, even the valuation adjustment such as instacart does not necessarily reflect the real and tragic situation of technology stocks.
The fund "Fuxing IPO ETF" (an exchange traded fund) managed by Fuxing capital has tracked about 100 companies listed in US stocks in recent years. Compared with the 52 week high in September last year, the net value of the fund has fallen by 60%. On Monday, the fund's net worth plummeted by 9.7% and has fallen by 19% since May.
