Fact of the Day: Many Nasdaq Stocks Are In Bear Markets

The S&P and the Dow are down 1.9% and 0.3% year-to-date in the first week of 2022. The NASDAQ Composite index is off by 4.5%. These stats do not tell the full extent of selling underway in the tech heavy NASDAQ.

According to Sundial Capital Research quoted in a journal article over the weekend:

  • About 40% of the stocks in the Nasdaq Composite are down 50% from their 52-week highs.
  • Almost two-thirds are in bear markets or down 20%.

Source: U.S. Stocks Close Lower After Jobs Report, WSJ

Software stocks are taking it on chin after a great run in recent years. Below chart shows a sample of five stocks’ return in the past year:

Click to enlarge

Source: Yahoo Finance

Referenced Stocks:

  • Adobe Inc.(ADBE)
  • Atlassian Corporation Plc (TEAM)
  • DocuSign Inc. (DOCU)
  • Autodesk Inc.(ADSK)

Disclosure: No positions

Leave a Reply

Your email address will not be published. Required fields are marked *