It’s been a painful 30 days for the Nasdaq, but it’s been downright nasty for 239 members of the index that are in already bear market territory after Friday’s freefall. A bear market is considered a 20% decline from a recent high.Nearly 300 stocks in the universe of nearly 2,400 on the Nasdaq Composite are down 20% or more from the index’ high-water mark this year on March 5, according to a USA TODAY analysis of data from S&P Capital IQ.
Among the hardest-hit Nasdaq stocks with share prices of $10 apiece before the meltdown include security software company, FireEye, down 47%, biotech Raptor Pharmaceuticals, down 47% and disaster technology recovery firm InterCloud, down 46%.
But it’s not just the small Nasdaq stocks getting torched. Among the big-cap tech stocks getting clobbered most are online retailer Amazon.com, down 13.3%, Facebook off 20.6% and biotech Gilead Sciences, down 12.7%.
And Friday certainly was just the latest kick on a weakened Nasdaq. Among the Nasdaq stocks with the biggest market values, the hardest hit Friday included Google, down 4.6%, Facebook off 4.6% and biotech Biogen Idec down 4.5%.
http://americasmarkets.usatoday.com/2014/04/04/ouch-nasdaq-stocks-crush…
Also: Netflix, LinkedIn, and the list goes on...
Stocks that go up for no reason go down for no reason
Consider it a reckoning, winter's coming.
I'm not a macro guy, but I'm curious how much of this is just related to equity market outflows (which work on a LIFO basis) versus being the beginning of the end for investors accepting irrational exuberance as an investment strategy.
If this keeps up... the outflows and redemptions from funds that are major known-beneficiaries of the momentum rally are going to be epic. If we don't see a few blowups I'd be surprised.
Usually the money that is last to jump into an equity bull market is also the first to leave. Think momentum investor.
I asking myself the same questions today, I assumed it was due to high valuations relativre to other sectors and less perceieved future earnings growth potential compared to other sectors such as autos. Anyone got a clearer idea?
http://www.cnbc.com/id/101564158
HF de-leveraging also likely a component
IMFUTURE you're right on. Everyone is selling last years winners due valuations/ beta and buying value plays. Many tech names I cover have nothing fundamentally wrong with their story. Buysiders are fearing Q1 earnings comps. However, Q1 sector earnings pop will end the bleeding. A few companies early reported and their stock popped. Cyclical sectors such as auto's have been beaten up so much in recent years, their downward cycle is finally bottoming out at an attractive multiple. Therefore, money is moving from tech to more defensive plays... IMO
This is such an ER answer
Over/under until first tiger TMT fund blows up?
So what is a Hedge Fund answer to this
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