The benchmark index of technology companies on Wall Street pushed up more than 2.5% during the session on Tuesday at the close of the European markets. This renewed momentum in the Nasdaq 100 means seeing the selective with a cut of less than 20% in the whole of 2022, therefore, in which it has been mired for most of the year after advancing 2.7% in today’s session.
The selective hit its floor for the current year on June 16, when it reached 11,127 points and brought the Nasdaq to a level not seen since the end of 2020, when the world was plunged into the coronavirus crisis while technology companies were starring in their own stock market rally. But since that 2022 low, this Y index bounces more than 19% to its current trading price.
Of course, few indices in the world register such a negative evolution as that of the Nasdaq 100 in the whole of 2022. , excuse the redundancy, since it is made up almost exclusively of them. An environment in which central banks raise interest rates to alleviate inflation plays against this type of company, which benefits from a low price of money to expand its financing, with which it promotes technological innovation.
And given that in recent months there has only been talk of how the discourse of institutions such as the United States Federal Reserve has only hardened, the price of technological values deepened its falls. In June, when the United States fell 75 basis points, the Nasdaq 100 fell more than 31%, its worst mark in the year to date.
Today another variable has come into play: the presentation of results for the second quarter of the year, which despite evidencing a decline in the profits of the one hundred companies within the Nasdaq 100 due to inflation (as the predominant factor in the detraction of consumption), the result until June is not being as negative as expected, according to Bloomberg. The result exceeds market forecasts by almost 4%. However, the reality is that North American technology companies have registered less profit than in the same period last year. With more than 60% of the values within this index with their accounts updated until June, the deterioration of the profit represents almost 8%.
And that’s because of second-quarter losses from stocks like Align Technology, which cut more than 30% of its second-quarter earnings. A percentage that has also registered another of the largest values of the Nasdaq 100: Meta (the owner of the social network Facebook). “YoY growth of -0.88% for the first time ever. These latest results missed expectations and were a sign of Meta’s struggles in 2022,” said eToro analyst Josh Gilbert. .
netflix the worst
This leads both companies to be among those so far this year by cutting around 50% of their stock value. But the title of ‘worst value of the Nasdaq 100’ in the year is for Netflix, which falls more than 60% despite having contained the loss of subscribers in the first quarter of this year. In addition, it does not have the support of the market consensus collected by FactSet, which considers that it hardly has any future to go on the stock market since it registers a potential of 5.2%.
On the opposite side of the selective are T-Mobile, Vertex and Activision as the companies that contribute the most to the Nasdaq in 2022 due to their track record and weight within the index. In addition, they rise more than 20% in the year in all three cases. However, the most bullish stock to date is Constellation Energy, advancing almost 58% even though it is already trading close to the market consensus target price of $68.
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