For those who trod in the wrong places, the outcome has been painful. About half of a US$9.1 trillion rout in the S&P 500 Index was the doing of just six megacaps.
Marked by surging inflation, jumbo-sized interest rate hikes, a darkening outlook on corporate earnings and recession clouds, the S&P 500 Index has lost 21 per cent, on pace for its biggest slump since 2008. From crypto to former pandemic winners and so-called FAANG stocks, investors have been shaken out of their profit euphoria, sometimes in the blink of an eye.
To that can be added regulatory and legal risks, cutbacks from advertisers and a crackdown on targeted ads by Apple. Plus, Chief Executive Officer Mark Zuckerberg’s bet on virtual reality through the metaverse has cost the company billions and isn’t expected to turn a profit anytime soon. Not all analysts are so gloomy, with the average price target implying that the stock will more than double in the next 12 months.It’s been a difficult year for many stocks that not long ago were considered pandemic winners. Prime among them is the online car seller Carvana.
“While the company has been aggressively cutting fixed expense, we also see execution risks as elevated,” Truist Securities analyst Naved Khan wrote in a December note, downgrading the stock to hold from buy.Another lockdown winner turned loser is Peloton. Having lost a large part of its searing 2020 gains last year, the stock has slumped a further 78 per cent in 2022, and now trades a long way below even its 2019 initial public offering price.
Analysts mostly look for the shares to rally in 2023, with the average price target implying 59 per cent upside over the next 12 months.Peloton’s struggles have had a knock-on effect on Affirm, the buy-now-pay-later lender whose revenue was boosted during the pandemic by a partnership between the firms.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Expert warns of ‘perfect storm’ as the number of police shootings increases in 2022James Hanna was kind to animals and children. He was big on hugs and loved to travel. His family says he was excited about his future, but that was stole
Read more »
Sherdog’s 2022 Knockout of the YearMichael Chandler’s second-round stoppage of Tony Ferguson at UFC 274 on May 7 was marked by the abrupt finality of its violence.
Read more »
2022 in review, Part 2: Kenney resigns as UCP leader; Pope visits Canada, apologizesPostmedia journalist Bill Kaufmann looks at social, political, cultural events and more that made news in the middle four months of 2022.
Read more »