Over the last 12 months, the tech industry has experienced a meltdown that it hasn’t seen for decades. This retraction was inevitable for many economists and analysts, given the enormous growth in the sector since the start of the millennium. The world’s biggest tech companies have announced thousands of layoffs, and it has caused concern among the broader global economy due to the sheer stature of these organizations.
Although many sectors are trying to rise above the broader economic turbulence gripping many major world economies, some tech companies have dropped monstrously compared to others. Of course, macroeconomic factors like inflation rates haven’t helped, but some tech companies have weathered the storm better than others.
#5 – Meta
It’s been a frosty few years for Zuckerberg and his crew. For a man who has monopolized the social media industry with such ferocity and aggression, many people knew their seemingly infinite growth wouldn’t last. As he hoovered up a lot of the serious competition around him and the likes of Instagram introduced the best features from other competitors, it looked like the sky was the limit for his social media empire.
Following a significant pivot in name and business model to Meta, focusing on the wonders of the metaverse, Meta has taken a monstrous hit to its stock. In September 2021, a share in Meta was worth $378.69. By November 2022, it was trading at roughly $90 a share. It looked like Meta hadn’t been following some basic social media marketing tips, many of which they pioneered themselves, and Zuckerberg’s net worth dropped by billions.
Although the price has rebounded slightly, it is still nearly 40% lower than its market high in 2021. Moreover, with the company continually announcing mass layoffs and the ice becoming thinner in the tech sector, don’t be surprised if you see this stock tumble again over the next six months.
#4 – DoorDash, Inc.
DoorDash began life as an innovative startup in San Francisco in January, 2013. It allows customers and businesses to streamline their product delivery. It was a hit throughout the 2010s and has been one of the more well-known success stories. However, throughout 2022, its stock dropped by an eye-watering 70%.
Analysts have stated that one of the main reasons this sharp drop occurred was one of their key rivals established a partnership with Amazon, causing many customers to opt for their competitor instead. The stock has since bounced back, but Tony Xu would have been uncomfortable watching so much of his wealth disappear along with the tanking stock.
#3 – Asana, Inc.
Unless you work in office logistics, you may not have come across Asana, Inc. before. Unfortunately for Asana, they have been hitting the headlines for the wrong reasons this year, following a colossal 73% drop in their stock. What has acted as a catalyst for this tumbling share price is unclear.
However, Morgan Stanley has stated that Asana is operating in a crowded marketplace, and not offering a standout product certainly wouldn’t have contributed positively.
#2 – Peloton, Inc.
This New York-based startup has lost nearly 80% of its stock value, so you’d be forgiven for thinking it’s on its way out. However, although Peloton, Inc. is so high up this list, the overall business model is still doing well.
The company experienced spectacular growth during the pandemic as people were forced to adapt to living and exercising indoors for months. Throughout 2020, the company’s share price exploded by nearly 500%, so this natural drop in price puts them back to a level similar to where they were before the beginning of the pandemic.
They maintained some of their newly acquired business throughout 2021, and while their stock was bound to decline once everything began to re-open, not many predicted it would drop through the floor as quickly as it did.
#1 – Snap
Coming in at the top is Snap, with a colossal loss of 83%. At its peak, its share price traded at just over $30 per share. However, by November 2021, it had dipped to less than $8 per share.
Despite a marginal gain, it now hovers around $11, and with many other companies in this sector making moves, it looks as though this particular company and stock may have had its day.
Given the overall economic outlook, some stocks featured in today’s list could easily face another sharp dip. However, many have made plans to insulate themselves from the worst, and the more prominent ones should have enough to weather the economic storm.