This year’s hottest technology IPO has a hard time

On Wednesday, November 10, 2021, the Rivian R1T electric pickup truck will be listed off the New York NASDAQ market website.

Soldier | Bloomberg | Getty Images

Some of the hottest tech IPOs this year include Rivian, confirm with Rob Rox The market plummeted on Monday because technology stocks Nasdaq Fall into negativity. at the same time, Standard & Poor’s 500 Index with Dow Jones Industrial Average Staying optimistic indicates that investors are exiting the technology industry.

Although there is no clear reason for the sell-off, the stocks that have risen the most this year are feeling the pressure. Affirm witnessed rapid stock growth in its new partnership Amazon It fell 7% in the afternoon trading. Roblox, which benefited from increased interest in Metaverse, fell by about 9%.

Selling by electric car manufacturers Rivian, Its value is higher than Ford with General Motors After listing, it will compete with competitors Tesla, Continue on Monday. As investors continued to take profits, its stock price fell by more than 12%.

Fear of higher interest rates, which usually means Decrease in expected revenue growth For investors, it may be a reason for the sell-off.However, President Joe Biden nominated Fed Chairman Jerome Powell for re-election on Monday, and the Fed is not expected to raise interest rates for the first time. Until summer As early as 2022.

In the case of possible interest rate hikes, Goldman Sachs analysts in a report on November 19 urged portfolio managers to pay attention to “currently higher profitability growth stocks” and avoid fast-growing stocks that fully value long-term growth expectations. company.

The analyst wrote: “Our recommendation is to avoid fast-growing companies that are completely focused on long-term growth expectations because they are more susceptible to the risk of rising interest rates or disappointing revenue.” “In contrast, the current profitability is higher. Of growth stocks have relatively short durations, so they are less affected by the risk of rising interest rates.”

Some of these technology companies with high profitability and rapid expected revenue growth include Palantir, Skyrocket, Yuan with letter.

Some of the largest IPOs in 2020 are also feeling the pressure. Posture Plummeted nearly 20%, and Janitor with Airbnb Both fell 7% on Monday afternoon.

The rotation of technology stocks earlier this year hit cloud stocks, such as fast with Snowflake As investors turn to financial and commodity stocks that usually outperform the broader market during periods of inflation. On Monday, the two stocks fell about 5% and 7%, respectively.


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