Friday, February 26, 2016

Tech stocks: fear of Crash 2.0 – Mittelbayerische



 Technology shares were hit particularly hard during the stock market crash since the beginning. Bursts another tech bubble?
By Hannes Breustedt, dpa

 . 13 February 2016


New York Only “unicorns” slaughtered, now Internet giants come under pressure: has the tech sector on the stock exchange a miserable start gets the new year. Investors no longer believe the rosy growth prospects, on which the high valuations of many companies are based. Memories of the “dot com crash” the millennium will be called back to mind. Bursts yet another tech bubble?

15 percent, the Nasdaq Composite Index Composite, are listed in the industry heavyweights like Apple, Google or Amazon Alphabet mother, lost since the beginning. This means that growth since the end of 2014 gone, lost hundreds of billions of market capitalization. Investors had in 2016, although in any case not much to laugh – even the US index S & P 500 was almost ten percent. But tech stocks have come under particularly heavy wheels.

It could even fatter come

Experts warn that things could get even fatter. “I definitely believe that we are dealing in this market with inflated ratings,” said Hany Nada, founder of venture capital firm GGV Capital, recently CNBC. Partly companies were traded twice reasonable.

began operation of the “Tech-storm” in the past year with increasing skepticism in start-ups that are not yet listed on the stock exchange. For a long time these companies showered with money investors, but then turned the mood. Hopefuls mentioned the potential of “Unicorns” (Unicorns) was scrutinized at a time.

When “Unicorns” (mostly tech) refers to companies that create a market of over a billion dollars off the market. Prominent examples are Uber, Airbnb, or Snapchat. A murmur went through the market, as one of the Unicorns – the payment service Square by Twitter co-founder Jack Dorsey – the IPO in autumn rated significantly lower than was previously in a round of financing for investors.

Also Amazon and Twitter being targeted

Even with other companies looked backers suddenly closer. So the big fund company Fidelity corrected the value of their investment in the photo app Snapchat by a quarter down. Investors realized that maybe not all the highly traded tech pearls will fulfill their promise of growth

The doubts widened from -. The largest in the industry came now targeted by the markets. Amazon lost since the beginning of about a quarter of Akienwerts, Twitter almost a third, LinkedIn more than half. Even Apple and alphabet – the two most expensive listed companies in the world – could not escape the downward and were last with ten and nine percent in the red.

While some companies have major problems – Yahoo or Twitter kriseln strong. Apple and alphabet but rake in billions and sitting on huge cash mountains. The quarterly figures do not explain the downward trend: 65 percent of tech companies surpassed analysts’ expectations – that was only 49 percent in the S & amp; P 500

So the sale is actually just as to interpret fundamental rethinking of investors. Warnings of a bubble, there is a long time. The reviews seem partly really like a very bold bet on the future – for example, the car service app Uber is rated in the financing rounds of investors despite red numbers with over 50 billion dollars, higher than auto giant as the Opel’s parent General Motors.

Nevertheless, most analysts say that the comparison with the bursting of the millennium the Internet bubble limps. Reminder: Back then swallowed the Internet Dino AOL, Verizon in May 2015 for $ 4.4 billion, bought Time Warner for more than 160 billion dollars. Although expert Marko Kolanović JPMorgan believes that for the time being is still going down with the tech values. “I would not say that we are dealing with a full blown bubble in the sector.”

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