What is happening in GROWTH
and TECH
stocks
Nasdaq gained 9.6% in August and peaked at 12.000+ on the 2nd of Sept
It then quickly lost over 6% in 2 days
A short week-end thread




A short week-end thread

If you’ve been here for some time, you have already experienced drawdowns
Remember September 2018 when the $QQQ went from 185+ to 145 and would not break out until end of December
Remember September 2019 when high flying growth names lost 15 - 20% in 2 days for no reason


What happened lately?
Investors hate uncertainty above anything else and COVID halved the valuation of most (growth) stocks
Lockdowns were put in place and the economy shifted virtual







On valuations now
With small to negative income, what matters for growth stocks is the Price to Sales Ratio
A look at most tech stocks (large and small caps) reveals that their PS ratio has extended above it average bounds in the last months
















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Disclaimer - This is not investment advice in any form and investors are encouraged to conduct their own research before investing.
Sources
✑ https://www.macrotrends.net/
✑ https://www.equityzen.com
Sources
✑ https://www.macrotrends.net/
✑ https://www.equityzen.com