Fall from recent highs

hi fly
Source: RWM

 

Some of the most prominent names in technology are getting shellacked today. These companies got way ahead of themselves and now they are, well, to be polite, let’s just call it “retrenching,” as they give up a large percentage of their gains.

I don’t think that Twitter Inc., LinkedIn Corp., Netflix Inc. or Tesla Motors Inc. are the force that has been driving the market higher — but they certainly garner an enormous amount of attention from the trading public and financial press.

It’s noteworthy that Google Inc. and Facebook Inc., ostensibly two of the industry’s leaders, are off only about 3 percent and 5 percent, respectively, having made up some of their earlier losses.

But let’s not put lipstick on this pig. The technology sector was down almost 2 percent today while the broader market is down less than half a point. And while technology is off a little more than 4 percent from its peak, as you can see, some names are just getting knocked down from their peaks.

More on this later….

 

Originally published here

Category: Sentiment, Technology, Trading

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3 Responses to “High Flying Tech Stocks Come Back to Earth”

  1. chartist says:

    Looking at the Nikkei futures chart, it’s appears to be a busted bear flag from the beginning of the year highs….Measured target is 12500.

  2. LeftCoastIndependent says:

    Oh my. Maybe high flying real estate prices in the Bay Area will come back down to planet Earth again also.

  3. winstongator says:

    There seems to be too much glee in pointing this out. First, tech goes far beyond software. Lots of electronics between the virtual keyboard as you tweet to someone else’s computer screen. Second, these tech companies are providing much more significant value to customers that companies that did not survive Dot-Com1.0. I’m going to sever my $160/mo relationship with TimeWarner for a $10-20 relationship with Netflix – it’s so much lower, I don’t even know what it is exactly! It’s also not ‘the(se) companies” getting ahead of themselves, it is shareholders looking for gains that pushed those stocks up. The investors who rode the run up in share prices are totally different than the founders and employees powering those sites.