Why are the tech stocks suddenly declining?

Once that dominated the NASDAQ, the tech stocks are taking a steeper fall than most indexes in the markets. 

 

There seem to be a few analogies associated with this consequence, but here’s the most important one –

 

Since the year 2010, tech stocks have pretty much witnessed a significant rise. Now call it major disruptions or the increase in demand, but the growth hasn’t gone unnoticed at all.

 

After the financial crisis of 2008, there were fairly lower interest rates to help economies across the globe recover, and of course, this was the time when smartphones were just being born.

 

From the beginning of the last decade till the end, the rise of social media, new applications, improvisation of existing tech services, and the introduction of new devices happened on an unprecedented scale. This significantly boosted the demand for software and hardware tech. Facebook, in its last 10 years of existence, single-handedly hired more than 40,000 people.

 

And even when the pandemic hit, the growth in tech didn’t stop. Since people had nothing better to do than rely on their devices and services, the growth across this sphere didn’t stop, at least till now.

 

Right now, the pandemic is over, people are back in their offices, off of their phones, watching less Netflix, and communicating less over Zoom. And well, these tech companies somehow have to beat the rising inflation as well.

 

This led to these tech companies either laying-off employees or increasing their product prices, which altogether heavily alters their position as the top-performing companies on the charts.

 

Now while that surely doesn’t mean that your investments in these companies is a bad idea for the future. In fact, we’ve always seen tech improvising and getting better every single year, allowing you to be confident in your investments. 

All we can do right now is witness the markets and think of it as a minor speed bump on a long road.

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