Technology stocks have had a difficult period this year as concerns about high-interest rates continue. The Nasdaq 100 index has crashed by about 30% from its all-time high and is trading at the lowest since November 2020. While many tech stocks like Salesforce and Adobe will bounce back easily, many others will have a tough time. Here are some of the top technology companies that will find it difficult to bounce back.
Snap (NYSE: SNAP) stock price has been in a deep sell-off after peaking at $83.41 in September last year. The stock has declined by more than 73% from its highest point in 2021. And today, the stock has plummeted by over 30% in the pre-market session. This decline brings the company’s market cap to about $33 billion.
Snap is an excellent social media company that has seen a lot of growth in the past few years. It also has a strong market share in its small niche since it targets many young people. However, there is a likelihood that the company will see slow growth as companies slash their marketing budgets due to inflation.
In addition, the company is facing strong competition from a company like TikTok that has grown its market share in the past few years. Technically, speaking, the Snap stock price will likely continue falling in the coming months.
Carvana (NYSE: CVNA) stock price has been in a strong downward trend for months. The shares peaked at an all-time high of $377 in 2021. Since then, the company’s stock price has declined by more than 92%, bringing its market cap to about $5 billion.
Carvana faces numerous challenges. First, it was recently barred to operate in Illinois, where it was accused of title delays. Second, with car prices surging, there is a likelihood that the company will see a slowdown in growth. Third, there are concerns about the firm’s profitability.
Therefore, while Carvana has a good reputation, there is a possibility that the company’s stock will find it challenging as interest rates rise.
Peloton (NASDAQ: PTON) stock price has had a strong fall from grace in the past few months. After peaking at $171 in January 2021, the shares have declined by more than 90% to below $15. As a result, investors have seen their holdings tumble by more than $30 billion.
Peloton is transitioning its business from hardware to software. While this transition could be successful, it is simply too early to tell. Therefore, the stock will have a hard time recovering in the near term.