Why are tech stocks going down?

Meta
hijafw

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hijafw
6d 29 Comments

Seems all tech stock is shitting the bed this week. what gives?

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 TOP 29 Comments
  • Amazon
    egsS11

    Go to company page Amazon

    egsS11
    Tc or gtfo
    6d 6
    • New
      Jjjkk

      New

      Jjjkk
      @google are you stuck in atl or something?
      6d
    • Meta
      bQaD19

      Go to company page Meta

      bQaD19
      Look, we are having a hard time calculating TC that's real-time dropping like this
      6d
  • Google
    JVWU75

    Go to company page Google

    JVWU75
    Stocks that trade at a high PE ratio are long term bets on continued really high growth.

    When interest rates go up, growth has to be even higher to justify such a high PE. To be simplistic, pretend there are only two investment options: GOOG and bank interest. investors say “at 1% interest from the banks, I’d rather bet on GOOGs continued growth. It’s overpriced now but it’s growing super fast and will probably beat inflation. At 2% (or 3 or 4 or 5) interest GOOG needs to grow even more ridiculously fast to be worth it. Obviously that isn’t happening so I’m selling some GOOG and just taking the interest.”
    6d 1
  • Google
    L6 paid 🥜

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    L6 paid 🥜
    All of tech will take a big hit in Q3. Amazon will probably be in the best position.
    6d 5
  • GitHub / Eng
    ieicuve739

    Go to company page GitHub Eng

     ieicuve739
    Still a war in Europe, inflation, high energy prices, that Covid stuff still ongoing,… the recession is looming and markets affect also tech
    6d 3
    • Meta
      WGFP35

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      WGFP35
      In addition, higher and still likely to rise interest rates make all of the above less forgivable
      6d
    • Meta
      WGFP35

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      WGFP35
      In a high interest rate environment won’t 10-30 years out matter even less to current value? (Thinking through how the discounted cash flows would work)
      6d
  • Joe Biden
    6d 1