Bad week for technology stocks. Are we in trouble?

Workday / Eng Tilderman
Aug 17, 2018 280 Comments

Netflix: dropped over $100 per share from $418 down to $316

Facebook: dropped over $40 per share from $217 down to $173.

Even Google has fallen down over $50 per share recently.

Tech stocks have been booming for a long time, but now I'm seeing this. What is happening?

My friends are seeing it, too. One of them keeps bragging to me about how he sold all his Netflix at $402 before it really went off the cliff and down in the low $300s this week. I'm so jealous! He told me he was using his money as a down payment for the new Tesla. I was so mad!

I want to sell it all, but I've been following investing and know that time in the market beats timing the market. I know that. I just wish I could get that money back. How much further can it go down?

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TOP 280 Comments
  • Apple texan
    Wow, that was a long story and weakly related to the question... :)
    Aug 17, 2018 11
    • Workday / Eng Tilderman
      OP
      I'll check that out. Thanks! Anything would be better than leaving my money in Netflix and other tech stocks as they crash.
      Aug 18, 2018
    • OpenTable SAS15
      Even I want to invest in index funds but don't seem to get around what is the best one to pick .. Any good fiduciaries in Bay Area ?
      Aug 19, 2018
    • AdRoll / Eng ipopwc
      @SAS15 agreed; it should be much more simple. betterment and the like can help but I still don’t know what I could be missing with an actual individual paying attention.
      Aug 19, 2018
    • Google mooncalf1
      Fidelity, Schwab, or Vanguard are the typical best bets for index funds. I use the Vanguard Target Date Retirement funds which have slightly higher cost than a straight index fund, but autobalance stocks and bonds to get more conservative as one approaches retirement. I'd rather just sock it away and forget about it.

      But if you want to be slightly more active, you can save a little on fees by managing yourself, ala a 3 fund plan or something similar. If you want to get in the weeds, check out the bogleheads site, the forums there are legit.
      Aug 19, 2018
    • Agoda.com qtOm46
      How is picking stocks any better than Vegas?
      Aug 20, 2018
  • Cloudera thma27
    To be fair, Apple stock has been on a tear. With that said, I feel your NFLX pain.
    Aug 17, 2018 5
    • Workday / Eng Tilderman
      OP
      Yeah, I really wish I bought into Apple earlier. You must be pretty smart!
      Aug 17, 2018
    • Microsoft f(x)
      Lucky is the word.
      Aug 17, 2018
    • Workday / Eng Tilderman
      OP
      Haha. I just wish that I am lucky enough to have the right tech stocks, because most of them seem to be going down.
      Aug 17, 2018
    • MGM Resorts joTz32
      NFLX created their own pain. It's your fault if you joined them on their journey of miserable decisions.
      Aug 19, 2018
    • Oracle farthard
      NFLX needs another big correction. Their stock is bloated for no reason. Their competitor Amazon Prime has started keeping good content. Netflix was never about content, but was the sole provider, now that's not the case. Now they need to compete and prove their worth
      Aug 19, 2018
  • SanDisk Xpmo
    OP.. if you are new in stock market and worried about volatility or falling down of expensive stocks, you need to do some reading.
    Aug 17, 2018 17
    • SanDisk Xpmo
      Yes.. stock price eventually follows company’s intrinsic value.
      Aug 17, 2018
    • Workday / Eng Tilderman
      OP
      Oh my gosh. I definitely don't want it to go down to $60. Lots of people with huge losses. I definitely don't want to sell all, though. If it goes up to $600 I'm going to look so stupid. Maybe I'll just sell another half first thing Monday morning.
      Aug 17, 2018
    • Facebook / Mgmt AsdfFdsa?
      Jesus man you need a Xanax.
      Aug 19, 2018
    • Intuit hdhddugkv
      I would hate to work with OP. every sprint must be a panic attack.
      Aug 19, 2018
    • Nordstrom / Eng
      udit

      Nordstrom Eng

      PRE
      Google, Cisco
      uditmore
      Tilderman, you are doing this all wrong. You need to stop, delete all finance apps from your phone, diversify a little bit and then ignore it. Go back every few months to make tiny adjustments. Don't treat your financial investments like a slot machine.
      Aug 19, 2018
  • Google zoeK64
    Turkey is imploding, interest rates are rising, the real estate market might be turning, there's a lot of uncertainty about trade, China might be hitting a slow patch. It's called The Economic Cycle, and we're probably close to the peak.
    Aug 17, 2018 10
    • Google zoeK64
      Everyone will be fired, everyone. The only ones left running the companies will be AI chatbots and Boston Robotics killer robot dogs.
      Aug 17, 2018
    • Workday / Eng Tilderman
      OP
      I think that's a little extreme.
      Aug 17, 2018
    • Apple tTRe42
      We’ll hit negative employment because they’ll probably ask everyone for a couple years of salary back.
      Aug 19, 2018
    • Facebook / Eng heyyya
      OP must be young.
      Aug 19, 2018
    • Nordstrom / Eng
      udit

      Nordstrom Eng

      PRE
      Google, Cisco
      uditmore
      Don't forget the economic impacts of the coming tariff hikes.
      Aug 19, 2018
  • Microsoft JHvP52
    Don’t let the ups and downs bother you much...a market correction was due and that’s what we’re likely seeing. Stay in it for the long run.
    Aug 17, 2018 7
    • Workday / Eng Tilderman
      OP
      Well, that worries me because stocks went up a lot. Does that mean they could go down a lot?

      I would hold on, but I don't want my experience from the tech bubble to repeat itself. We were all invested in the best businesses like Cisco and Pets.com. I hate to admit that now, but at the time I was confident that these companies were growing fast and at least Cisco was making great money. Then one went to $0 and another fell by like 80%. I don't want to go through that again.
      Aug 17, 2018
    • Microsoft JHvP52
      Are you talking about the .com bubble? Cisco is doing pretty well right now. Did you check how much you would have made if you would have held your Cisco stocks till date? And I’d say, Pets.com was just a really bad bet.
      Aug 17, 2018
    • Workday / Eng Tilderman
      OP
      Yeah. I would have lost about 5%.
      Aug 17, 2018
    • VMware BobbleHat
      Add inflation and you would have lost 50%
      Aug 18, 2018
    • Nordstrom / Eng
      udit

      Nordstrom Eng

      PRE
      Google, Cisco
      uditmore
      Are you counting all the Cisco dividends you would have received?
      Aug 19, 2018
  • Google / Eng
    sergey

    Google Eng

    BIO
    Top Contributor or GTFO
    sergeymore
    Don't. Buy. Individual. Stocks.
    Aug 17, 2018 9
    • Facebook / Mgmt AsdfFdsa?
      That would also be a really shitty index. You sound like you are way over-exposed on tech. Not to be rude, but it doesn’t sound like you’re an informed enough investor to be betting on individual stocks.
      Aug 19, 2018
    • Workday / Eng Tilderman
      OP
      Thank you. I understand and appreciate your concern. I am selling some of them, like Netflix. 😁
      Aug 19, 2018
    • Facebook IKTz24
      I think he means that you don’t seem to be informed enough to be playing with individual stocks at all. (Most people aren’t). Vanguard index funds would probably be a better option for you. (and for most people.)
      Aug 19, 2018
    • New lulll
      Lol, you can do so much better than mutual funds with shitty fees
      Aug 19, 2018
    • Facebook / Mgmt AsdfFdsa?
      Wealthfront or Betterment. Boom. Done.
      Aug 19, 2018
  • Autodesk / Eng FootRace
    They’ll bounce back shortly. Market had a crazy few weeks thanks to trump
    Aug 17, 2018 5
    • Workday / Eng Tilderman
      OP
      How do you know they will bounce back shortly? Also, I agree that Trump really roils the stock market, but it has also done really well with him. I'm not sure we can blame anything on Trump.
      Aug 17, 2018
    • Amazon / Eng onMyWay
      Honestly. We should be in a depression by now, based on what I was told at election time
      Aug 19, 2018
    • SugarCRM vqtM81
      For those of you that think trump has anything to do with it, thank you. I’m on the other side of the trade taking all your money. Recession? Review the numbers for this last round of earnings...
      Aug 19, 2018
    • Nordstrom / Eng
      udit

      Nordstrom Eng

      PRE
      Google, Cisco
      uditmore
      Earnings have nothing to do with the overall health of the economy if they only go to a small group
      Aug 19, 2018
    • Blizzard FFWi76
      Unemployment is super low, but the wage numbers are troubling. I see wisdom in what you are saying, that a recession could be triggered by the low purchasing power of the masses. If that happens I hope that we see inequality addressed as a result.
      Aug 19, 2018
  • Amazon AryaWFell
    Someone with your level of maturity should not be trading high volatility stocks.
    Aug 19, 2018 6
    • Microsoft NLrO85
      Lol, sure, sell when it goes down. Emotional people who do that are the reason other people get rich. I always bought stocks when they were going down and it paid off so much every time. Pleade sell your netflix shares so I can buy them for even less.
      Aug 19, 2018
    • Workday / Eng Tilderman
      OP
      Are you going to buy Netflix at current price? Or is it still too high for you?
      Aug 19, 2018
    • Microsoft / Eng
      XGsa73

      Microsoft Eng

      PRE
      Microsoft
      XGsa73more
      I am going to slowly buy Netflix while it is going down (not in one go)
      Aug 19, 2018
    • Workday / Eng Tilderman
      OP
      When will you do first one?
      Aug 19, 2018
    • Workday / Eng Tilderman
      OP
      How low do you think it might go or when you would really want to pull trigger?
      Aug 19, 2018
  • Workday / Eng Tilderman
    OP
    As an update, I just put in an order to sell half my remaining shares at market open on Monday. This way I can get my profits before everyone else sells. If it goes up again I still have the other half, but at least i won't be the chump who didn't sell fast enough.
    Aug 18, 2018 17
    • Microsoft JHvP52
      You really don’t understand what a long term investment is...
      Aug 18, 2018
    • Workday / Eng Tilderman
      OP
      I have been in Netflix for a really long time. I just don't want to ride the crash.
      Aug 18, 2018
    • Microsoft / Eng
      XGsa73

      Microsoft Eng

      PRE
      Microsoft
      XGsa73more
      If I were you I will buy more and keep buying more as long as it is going down, as long as you believe in the company.
      I personally like Netflix (the product) and see them recovering.
      Aug 19, 2018
    • Capital One / Eng plmoknij
      I'll take all your NFLX
      Aug 19, 2018
    • Microsoft JHvP52
      OP, what are your thoughts today? Did you sell all NFLX last Monday? Do you think you made the right decision?
      Aug 24, 2018
  • Google / Mktg QuadLovin
    If your company is growing over 30%, your stock will be fine. If there is a slowdown in top or bottom line, your stock will take a bigger hit than the rest of the market. PE’s are high but not as high as pre Great Recession in 2008-09, so a light correction is a feature not a bug.
    Aug 17, 2018 14
    • Oracle hattori
      That's the understatement of the year! Read about at least one previous crash and the stocks that were hot before it! Blind posts aren't a substitute for that!
      Aug 17, 2018
    • Workday / Eng Tilderman
      OP
      I owned Cisco in 2000. It's p/e was 160. That's LOWER than Netflix p/e and Amazon p/e.
      Aug 17, 2018
    • Oracle hattori
      And Cisco CEO famously went to $1 base salary, and they had 20% lay off. How far did it's stock drop in 2001? From $80 to $10...
      Aug 17, 2018
    • Workday / Eng Tilderman
      OP
      It was like 70%
      Aug 17, 2018
    • Google Vdzlw
      Actually I think p/e are higher now than in 2008
      Aug 19, 2018
  • These companies are losing value because they think they are in charge of policing "speech". Had people known that these platforms would appoint themselves as the speech police of the world, I doubt people would have given them the power they now hold.

    For all of the anti American employees at these companies who are engaged in shadow banning, policing appropriateness for "the community", careful, people won't stand for this and the value of your options will take a hit.
    Aug 19, 2018 3
    • VMware BobbleHat
      What are you smoking?
      Aug 19, 2018
    • Microsoft / Eng
      XGsa73

      Microsoft Eng

      PRE
      Microsoft
      XGsa73more
      Wtf!
      Aug 19, 2018
    • Google mooncalf1
      Lol
      Aug 19, 2018
  • Amazon Gzi31
    Netflix stocks are down because of the reason that investors are doubtful for the future growth.
    1. There is a lot of competition in streaming services in US with Disney, Walmart and Amazon along with HBO and Roku.
    2. As per the last quarter earnings, Netflix didn’t meet the expectation of adding new customers.
    3. As per customer reviews, their new contents didn’t get much appreciation where Amazon’s won Grammy award.
    4. Netflix also has tough competitors in international market.
    For what I have seen investors are putting only on the stocks where they see future growth. In near future Netflix has to prove the dominance once again but for long term it will definitely go up.
    Aug 19, 2018 3
    • Netflix Flops
      Can you please explain your comment about Grammy? How come music awards is related to content? Which Grammy did Amazon win?
      Aug 21, 2018
    • Amazon Gzi31
      Ahh.. I was thinking about Golden globe and wrote Grammy. Amazon’s THE MARVELOUS MRS. MAISEL has won Golden globe award.
      Aug 21, 2018
    • Amazon / Eng
      goodgumbo

      Amazon Eng

      PRE
      Samsung America
      BIO
      http://twitter.com/luisbg
      goodgumbomore
      Aug 21, 2018
  • Apple Rjcricksnf
    In 2012 I bought nflx at 160s and 170s(pre split). It dropped all the way to 70. Was losing 10k on paper. I held on to stock. Did not regret. Having said that if you buy individual stocks be prepared to face its risk.
    Aug 17, 2018 11
    • Workday / Eng Tilderman
      OP
      I don't know. I feel like I'm a pretty average investor and I've held for a long time. I've only sold a little as it's gone down. Maybe you're right that it's really time to dump it all.
      Aug 17, 2018
    • Google / Product
      homeyclown

      Google Product

      BIO
      Honey don’t play dat
      homeyclownmore
      If you don’t believe in Netflix fundamental story you should sell. I have quite a lot in it but am a big believer so ‘losing’ 150k in the short term doesn’t bother me. The stock has always been volatile, but I prefer to pay attention to the long term trend
      Aug 18, 2018
    • Workday / Eng Tilderman
      OP
      I'm a strong believer in Netflix, too. I've been on board for a while. It just eats at me, though. Why do you think people are selling now? Why is it going down so fast?
      Aug 18, 2018
    • Google / Product
      homeyclown

      Google Product

      BIO
      Honey don’t play dat
      homeyclownmore
      Who knows? Some people were in for the ride and last quarter was below expectations. Happened in 2016 too but the fundamental story doesn’t change at all which is why the stock has grown significantly since then. I bet in the same way that the current price will look cheap in 2 years when they are at near 200m users
      Aug 18, 2018
    • Workday / Eng Tilderman
      OP
      That would be great! I guess I just have a hard time believing it this time. I mean you're right that it has happened before, but how many more times can it keep happening? It eventually needs to stop happening, right?
      Aug 18, 2018
  • Credit Karma Ahsuaia
    NFLX started the year around $200, double in just 6 months is just not sustainable, what goes up a lot will go down a lot. What do you expect?
    Aug 18, 2018 6
    • Microsoft / Eng
      XGsa73

      Microsoft Eng

      PRE
      Microsoft
      XGsa73more
      Did you expect it will go up this much and this fast in January ?
      Aug 19, 2018
    • Workday / Eng Tilderman
      OP
      Yes. That's why I held. I've had a good track record with it so far. Big gains! I just don't want to lose it all.
      Aug 19, 2018
    • Microsoft / Eng
      XGsa73

      Microsoft Eng

      PRE
      Microsoft
      XGsa73more
      My point was since it could go up so fast (based on expectation of growth) it can also go down fast (if the expectation is not met)
      Aug 19, 2018
    • Microsoft / Eng
      XGsa73

      Microsoft Eng

      PRE
      Microsoft
      XGsa73more
      If you don't want to take too much risk. Just sell, wait until things stabilize and then buy again.
      Aug 19, 2018
    • Workday / Eng Tilderman
      OP
      Yeah. That's good. I'll get out now and wait for things to be stable for a month or so.
      Aug 19, 2018
  • Staples rift
    I used to be like you when I cared about stuff and things. After working at “Big Office” I got to see how the world really works. You see, “Big Office” would supply other offices with stuff and things that would allow workers to sit all day and become unhealthy because I mean, what else were those people going to do with their lives? Then, they would allocate some of the profits into healthcare and pharmaceutical stocks that focused on treating the diseases that their sedentary products created. Soon enough, they had enough money to throw their weight around in the political arena and they were able to lobby and pay off politicians in order to prevent the cures of said ailments just so they could further the profit lifetime value through “treatments”. Then they’d throw some money at the insurance industry stocks so they were well diversified and risk averse. Even if the economy collapses, going long on VNQ is all the rave amongst “Big Everything and Big Everyone”. Big Office essentially controls the world and it’s fragile economy lol
    Aug 19, 2018 1
    • Workday / Eng Tilderman
      OP
      Wow. That's a sad story. Unfortunately, I don't think too far from the truth.
      Aug 19, 2018
  • Nordstrom peaches3
    Maybe Netflix is down because they aren’t doing anything about shows depicting child porn.
    Aug 19, 2018 8
  • Cisco / Strategy AKCW53
    MSFT & CSCO both doing well. Businesses that aren’t built on the success of a single app or SaaS service, but embedded in providing success to enterprise customers, with long term recurring revenue.
    Aug 19, 2018 3
    • Workday / Eng Tilderman
      OP
      Good point. Netflix only has one product. No moat. If that hits the fan, the company hits the fan. Stock plummets.

      Facebook a little safer, but still dependent on social media. Google maybe safest of the three. What do you think?
      Aug 19, 2018
    • Cisco / Strategy AKCW53
      Google is very sticky, but mostly ad-words content driving revenue and subsidizing rest of business. If a new search engine gained popularity they could get myspaced/blockbustered, but they are making big efforts to get into enterprise which I think will pay off long term in stability.
      Aug 19, 2018
    • Amazon / Eng robotpeep
      AdWords is something like 20% at this point. It would certainly hurt things, but the only reason it would plummet is because if uninformed investors overreacting. Then smart ppl come in and buy it on the cheap
      Aug 20, 2018
  • Microsoft WoCE36
    MSFT stock has been going up quietly, steady
    Aug 19, 2018 0
  • Microsoft / Mgmt
    neoan

    Microsoft Mgmt

    BIO
    Exec
    neoanmore
    Actually looking at tech ETFs it is still close to 8% higher than Jan
    Aug 19, 2018 0
  • Cisco cluster
    Will Netflix go down further? Already lost 1k in downturn
    Aug 17, 2018 9
    • I still have it. I am 0% concerned about it. I will buy just before Q3 earnings and am quite positive that will break even within the next year.

      You should BUY when a stock is low and not sell. Don’t you remember the #1 Wall Street rule “Buy Low, Sell High”.

      I think you should put 80% of your portfolio in index funds and 20% in individual stocks. If the return in individual stocks lags index funds change it to 100% index funds.
      Aug 19, 2018
    • Workday / Eng Tilderman
      OP
      From my perspective, I bought under 100 and selling at over 300, so I feel pretty good about it. I would definitely feel worse if it went into 200s. What would you do if it dropped into 200s? Would you be worried?
      Aug 19, 2018
    • I would buy more if I think the long term prospects are good (which is the case for Netflix). Think of it as an extended thanksgiving sale.
      Aug 19, 2018
    • Workday / Eng Tilderman
      OP
      I wish you the best. Too much risk for me. Feels like a roll of the 🎲🎲 just to stay in the green.
      Aug 19, 2018
    • By the way lot of stocks would be in green when markets open. Sell and put in ally bank if that’s what you want 😀.
      Aug 20, 2018

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