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Worst-performing tech stocks this week suggest U.S. over lockdowns


It’s funny happenedOn the road to the stock exchange retreat.

Stocks that stay at home most benefit from Covid-19, and subsequent lockdowns like Etsy, DoorDash, Zoom DocuSignThis week, the worst performers were. The new Covid Omicron variant which is expected to cause the opposite reaction, however it was the one that we were expecting. World Health Organization saidGlobally, poses a risk that is “very high”, and travels around the globe.

The steep selloff indicates that investors believe that no matter what happens to omicron the U.S. has ended the shut downs that increased food delivery and streaming TV, and forced people to communicate via video and collaborate online for work.

Zoom shares fell 18% over the past week. They hit a 52-week low of $177.12 per share on Dec. 3, a 69% decline from their record October 2020 high. Etsy shares, which were a popular online platform for buying masks early on in the pandemic fell 21%. DoorDash, Roku, Shopify and Roku all dropped 13%. Netflix fell 10%.

DocuSign is a software company that e-signature software, and its value has tripled since last year. tanked more than 40% on Friday after the company’s weak fourth-quarter guidance indicated “the pandemic tailwinds came to a much faster than expected halt,” JPMorgan analyst Sterling Auty wrote in a note to clients.

Tech sector workers felt a lot. On Friday, the Nasdaq Composite plunged more than 2.3%. This was a drop of 3% over the previous week. It is currently on track for its fifth worst week in the year. Friday’s downturn was caused by omicron worries and a disappointing jobs report.

However, some blue-chip tech companies have managed to withstand the pressure. Apple, HP CiscoEach stock posted gains over the past week. Investors seeking to take advantage of volatility in the markets switched from high-multiple, riskier stocks to cash-generating, dividend-paying companies.

Jerome Powell, the Chairman of the Federal Reserve, indicated earlier in the week that central banks are so worried about rising inflation that they may begin to reduce its bond purchases designed to stimulate the economy.

Apple won the Tuesday award following Powell’s comments. only tech stock that was up.

Laura Martin, Needham analyst, stated to CNBC that there is a “flight to quality” with companies she believes will weather any storms, and not become bankrupt or in financial trouble.

Apple shares fell on Friday, but are still higher than 3% for this week. HP Shares rose 8% in the week to an all time high of 9% on Friday. HP CEO Enrique Lore said last weekThe company anticipates strong demand across all segments for personal computers in the “foreseeable future”.

Cisco’s stock rose by more than 2 percent this week Intel BroadcomThey were down less than 1%

However, for vast swathes of tech the market was full of red. Facebook, AMD, Adobe TeslaThe week ended with all of them falling by over 5%, but cloud software vendor AsanaThe stock, which was the most-performing tech stock, plummeted 39%. Bill.comAnother outperformer is, which dropped 23%.

SalesforceOn Tuesday, the company responded to cloud fears by issuing a weaker-than expected announcement. fourth-quarter forecast. This week, the stock has fallen 10%

“It has been a wild ride,” said Byron Deeter (partner at Bessemer Venture Partners) in a Friday interview on CNBC’s TechCheck. Deeter invests in cloud-based software. You can see four causes. Omicron can be looked at. There is also inflation. The interest rate can also be considered. Profit-taking is another option.

Deeter however is quick for skeptical people to recall what happened in the past year.

Deeter explained that working remotely is a good option for cloud stocks. Deeter said inflation can be concerning because it “links downstream to inflation certainly could lead to a rotation towards cash-generative stocks and value stocks over the long term.”

WATCH: Cloud stocks likely to remain volatile