At least we will never have to go through 2021 again. The second year of the Covid era turned out to be deceptively delicate for tech investors. While the Nasdaq Composite – a reasonable proxy for the sector – rose 23% over the course of the year through the middle of last week, it lagged the return on the


S&P 500

by about five percentage points. This is the first time since 2016. Tech stocks have been solid overall, but the indices have proven to be misleading, with strong performances from some of the biggest components hiding some ugly things under the surface.

Tech has been overshadowed by Covid-related news, the expectation of higher interest rates, the stuttering progress of the reopening, and newly discovered skepticism about inflated ratings. During 2020 high flyers like


Zoom video communication
(Ticker: ZM),


DocuSign
(DOCU) and


Octa
(OKTA) fell into the red, investors made big profits with legacy tech …

.



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