Throughout the year, tech stocks have been going down, and the biggest names in the industry have lost trillions of dollars in this decline.
For example, in the previous week, Amazon has gone down in stocks by 3.01%, while Apple and Microsoft also trailed at-1.27% and -1.51%, respectively.
Many things are responsible for the current conditions of tech stocks. Unlike the last five years, where this industry experienced major growth and impact, paving the way for more companies to be developed, 2022 seems to be different as the market is becoming saturated and stiff, making sales and profit slow down across various tech spaces.
This economy has not been smiling, and many industries have been affected. Tech companies are not left out, as they too have suffered heavily from the impact of the recession and the unending war between nations, especially the Russia and Ukrainian war.
The tech industry is known for needing a large number of investments to run the franchise, and some tech executives have failed to understand that the tech environment is volatile and they need to start cutting costs to continue being relevant in the industry, while other tech executives that currently understand the times are making changes and adjusting their businesses for the new reality in order to smoothly run their organizations.
As we all know, a lot of investors have put in millions of dollars this year into this buzzing franchise, and they are currently sitting on a huge number of losses, but my advice to them is that they should not panic and conduct meaningful research as most of these companies are high for the long run, and as soon as they are able to understand the times and make decisions that will help them overcome the changes, there are high chances to pick up profits.
For instance, cyber security companies have a very high future growth percentage because, in the coming years, more companies will be shifting to the cloud space, so investors can look in that direction in tech.
As the economy suffers a great downturn due to recession and other factors, note that most of these big tech companies have been through this before, and they rose from the ashes, while some are new to these challenges.
if you were an investor, do you think now is the best time to take risks, buy the dip, believe in these tech companies’ capabilities, or take a step back and reduce risk?
Let us know your opinion in the comments section.
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Photo by Nicholas Cappello
