Technology stocks led the market’s rally to record heights, but the largest tech names have been swept up by the recent selling wave. Most of the leading tech companies now at or near bear market declines, down roughly 20% from their mid-February highs.
The S&P 500 Information Technology sector closed at 1440.20 on Monday, down exactly 20% from its Feb. 19 peak. The info tech sector doesn’t include all of big tech -- ( Facebook ticker: FB) and Google-parent Alphabet (GOOGL) are in the Communications Services sector, for instance -- but the pain is generally universally.
Microsoft (MSFT) and Apple (AAPL) are hanging on to their position as the only U.S. companies with a market cap above $1 trillion, but both have suffered in the recent selloff. Microsoft is down 4.5% year to date, and off more than 20% from its closing high in mid-February. Bear markets are defined as drops of 20% or more. Apple is down 9% year to date and almost 19% below its recent peak.
Amazon (AMZN) and Alphabet, both of which made brief appearances above the $1 trillion market level, have since fallen substantially. Amazon has performed relatively better than the other tech giants, but it’s still off 2.6% for the year and 17% from last month’s peak. Facebook (FB), the fifth largest U.S. company by market cap, is down 17% year to date, and 22% from its February highs.
Cisco (CSCO), the largest networking equipment company, is down 21% for the year and 24% from its February highs. Intel (INTC), the leading chip maker, is off 15% for the year and almost 25% from its peak last month.
IBM (IBM), which got a lift from its recent announcement of a CEO change, is still down 12% year to date, and 24% from the stock’s February high. Oracle (ORCL), which only fell 3% Monday, is down 13% year to date, and 17% from its recent peak. Salesforce.com (CRM) is off 7% for the year and 22% from a February high.
Zoom Video Communications (ZM), which has become a popular play on the rush to remote meetings in the face of the rapid spread of coronavirus, was down just a fraction on Monday and remains 67% higher on the year. RingCentral (RING), a unified communications company which resells Zoom’s videoconferencing services, fell 3% Monday, but it’s still up 24% for the year.
Netflix (NFLX), seen by some investors as a bet on more people choosing to find entertainment at home, was down 6% Monday, but it remains 7% higher for the year. Roku (ROKU), the other leading streaming play, is down 28%. On Monday, it fell 5.7% to $96.26, closing below $100 a share for the first time since September.
Write to Eric J. Savitz at eric.savitz@barrons.com
2020-03-10 11:08:13Z
https://www.barrons.com/articles/coronavirus-selloff-has-pushed-tech-stocks-into-bear-market-territory-51583790641
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