This blog post breaks down the current status, or “pulse check,” of several popular technology companies. Readers and investors often ask what’s happening in the publicly-traded tech sector - this is intended to highlight measurable changes.
As many of our readers are aware, the 2022 year so far has experienced tough and negative performance for many financial assets, including index funds that focus on technology, internet, and cloud software companies.
Cohorts are broken down into three categories: FANGMAN, Large Technology Companies, and Software Companies. The companies that comprise each category are as follows:
*Note: Market data for the following data points is as of 5/3/2022; some values have been rounded to the nearest whole number for visual clarity. Koyfin is the source for all subsequent data in this blog post.
Multiples (EV/ NTM Sales) – Enterprise Value to Next 12-Months Sales
Percent Below 52-week Highs
Percent Above 52-week Lows
Relative Strength Index (RSI)
The combination of high inflation, rising interest rates, tightening monetary policy, high commodity prices, slowing economic growth, and more has created a challenging macro environment for many stocks.
Technology stocks continue to experience downward pressure, presenting significant price discounts to their January 2022 levels, and especially compared to their most recent 52-week highs.
The large-cap technology category has experienced a dramatic decline in prices, following the trend of software companies just a few months prior.
While large-cap tech companies moved from a median of 42% above their 52-week low prices to just 8.2%, several software company stock prices seem to be holding near or above their 52-week low points.
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