Stocktake: Tech stock woes continue

The most profitable company, Apple, has been underperforming for some time

Many of last week’s biggest losers have been weak for months, suggesting investors are in no hurry to rotate back into tech stocks. Photograph: EPA/Yonhap South Korea

Many of last week’s biggest losers have been weak for months, suggesting investors are in no hurry to rotate back into tech stocks. Photograph: EPA/Yonhap South Korea

 

Stocks tumbled last week as inflation fears gripped markets. Inflation aside, some profit-taking was clearly overdue.

Prior to the sell-off, the number of S&P 500 stocks hitting 52-week highs was at record levels, notes Bespoke Investment. Similarly elevated breadth readings were evident in all sectors, with one exception – technology, which has been weak for some time.

Even prior to the sell-off, an index of non-profitable tech stocks tracked by Goldman Sachs had lost 30 per cent of its value since February. The most profitable company, Apple, has been underperforming for some time, last week slipping below its 200-day moving average for the first time in more than a year.

Index investors could see last week’s weakness as a standard bout of profit-taking in an ongoing bull market, but technology stocks don’t have that excuse. Many of last week’s biggest losers have been weak for months, suggesting investors are in no hurry to rotate back into tech stocks any time soon.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.