Wyatt earp
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- Apr 21, 2012
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(Reuters) - The Nasdaq Composite that includes large-cap technology names like Alphabet, Microsoft and Facebook led another broad rout on Wall Street Friday, closing at its lowest level since October 2014.
Many stocks that had led on the way up in 2015 led the way down this week. Recent earnings and economic reports, including a tepid jobs report, seemed to confirm investors' fear that the economy, and corporate spending, are slowing.
Dismal sales forecasts from marquee technology names sent some high-profile shares crashing as investors questioned whether information-technology managers would keep spending on their products. LinkedIn Corp (LNKD.N) dropped 43.6 percent to $108.38 after a weak forecast, and business analytics company Tableau Software (DATA.N) lost almost half its value.
Facebook (FB.O) dropped 5.8 percent to $104.07 while Alphabet (GOOGL.O) fell 3.6 percent to $703.76.
Among consumer discretionary companies, Amazon (AMZN.O) slid 6.4 percent and Netflix (NFLX.O) was down 7.7 percent. Both had more than doubled last year and have been favorites with hedge funds. Friday's action suggests some hedge funds may be taking a harder look at valuations.
"There's a lot of portfolio de-risking going on and high valuation securities are often the first to be sold. It's also the securities that have done extremely well," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.
"It's a valuation call and it shows concern for the overall market.
Technology rout pushes Nasdaq to lowest close since 2014 | Reuters
Many stocks that had led on the way up in 2015 led the way down this week. Recent earnings and economic reports, including a tepid jobs report, seemed to confirm investors' fear that the economy, and corporate spending, are slowing.
Dismal sales forecasts from marquee technology names sent some high-profile shares crashing as investors questioned whether information-technology managers would keep spending on their products. LinkedIn Corp (LNKD.N) dropped 43.6 percent to $108.38 after a weak forecast, and business analytics company Tableau Software (DATA.N) lost almost half its value.
Facebook (FB.O) dropped 5.8 percent to $104.07 while Alphabet (GOOGL.O) fell 3.6 percent to $703.76.
Among consumer discretionary companies, Amazon (AMZN.O) slid 6.4 percent and Netflix (NFLX.O) was down 7.7 percent. Both had more than doubled last year and have been favorites with hedge funds. Friday's action suggests some hedge funds may be taking a harder look at valuations.
"There's a lot of portfolio de-risking going on and high valuation securities are often the first to be sold. It's also the securities that have done extremely well," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.
"It's a valuation call and it shows concern for the overall market.
Technology rout pushes Nasdaq to lowest close since 2014 | Reuters
