15 Biggest Tech Stock Drops in 2022

Published on October 25, 2022 at 6:59 am by Ramish Cheema in Lists, News

In this piece, we will take a look at the 15 biggest technology stock drops in 2022.

If there is one thing that can be said with certainty about the stock market right now, it’s that the market is officially in bear mode. This means that all major stock indexes, and shares, have now entered a protracted period of share price drops. These drops have been caused by the macroeconomic environment, and they are the result of several factors. One factor is inflation, as rising prices have hit consumer purchasing power and forced them to concentrate most of their spending resources on essential items. For large companies, such as Apple Inc. (NASDAQ:AAPL) and Intel Corporation (NASDAQ:INTC), this means that the money consumers might have allocated for a smartphone or a personal computing purchase is simply not there.

The other is the drastic increase in interest rates by the Federal Reserve, which is estimated to hike the rate to 5% by May next year, according to the traders betting on the futures market. The current rate sits at 3.25% and the new bets suggest that at least one massive 75 basis point and two 50 basis point hikes are headed our way.

Taking stock of the current situation for major stock indexes reveals that the picture is far from pretty. For instance, the NASDAQ Composite Index is down by 31% year to date, the S&P 500 index is down by 22%, the DOW Jones Industrial Average by 15%, and the New York Stock Exchange (NYSE) by 18%.

In this article we will focus on major tech stocks that fell sharply this year. Among the notable stocks in our list are Peloton Interactive, Inc. (NASDAQ:PTON), Snap Inc. (NYSE:SNAP), and Lyft, Inc. (NASDAQ:LYFT).

Photo by Ruben Sukatendel on Unsplash

Our Methodology

We studied hundreds of stocks in the technology market to narrow down to those that have witnessed the largest share price losses. They have been ranked through these drops.

Biggest Tech Stock Drops in 2022

15. EPAM Systems, Inc. (NYSE:EPAM)

Number of Hedge Fund Holders: 36

Year to Date Share Price Drop: 48%

EPAM Systems, Inc. (NYSE:EPAM) is an information technology services company that provides several services such as systems operations management, software development, and maintenance of public and private infrastructures. The firm is headquartered in Newtown, Pennsylvania, the United States.

EPAM Systems, Inc. (NYSE:EPAM)’s shares have dropped by 48% year to date, and out of the 895 hedge funds part of Insider Monkey’s survey for this year’s second quarter, 36 had held a stake in the company. Keybanc set a $510 share price target for the company in September 2022, as it shared that the firm’s shares are trading at a discount to historical averages.

EPAM Systems, Inc. (NYSE:EPAM)’s largest investor is Stephen Mandel’s Lone Pine Capital which owns 1.2 million shares that are worth $373 million.

Snap Inc. (NYSE:SNAP), Peloton Interactive, Inc. (NASDAQ:PTON), and Lyft, Inc. (NASDAQ:LYFT) are joined by EPAM Systems, Inc. (NYSE:EPAM) in our list of the largest technology stock price drops for 2022.

14. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 95

Year to Date Share Price Drop: 52%

Netflix, Inc. (NASDAQ:NFLX) is a video streaming service provider. The firm has thousands of shows and movies on its streaming platform and it licenses content from other studios and produces its own media as well. It is headquartered in Los Gatos, California, the United States.

Netflix, Inc. (NASDAQ:NFLX)’s shares have lost more than half of their value over the course of this year. The shares are down by 52% year to date, and the drops have been triggered by a weakening subscriber model as well as the macroeconomic environment. Out of the 895 hedge funds profiled by Insider Monkey for their Q2 2022 investments, 95 had invested in the company.

Out of these, Ken Fisher’s Fisher Asset Management is Netflix, Inc. (NASDAQ:NFLX)’s largest shareholder. It owns 6.5 million shares that are worth $1.1 billion.

Ensemble Capital Management mentioned the company in its Q3 2022 investor letter. Here is what the fund said:

“Netflix, Inc. (NASDAQ:NFLX) (+34.6%): After a punishing first half of the year when bearish investors came to believe that Netflix’s growth days were done for good, the company reported fewer subscriber losses than expected in the second quarter and guided for a return to at least modest subscriber growth in the third quarter. In addition, as more information about the company’s planned advertising supported subscription tier has become available, investors began to express growing confidence in this tool to revitalize growth in 2023.”

13. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 26

Year to Date Share Price Drop: 55%

Palantir Technologies Inc. (NYSE:PLTR) is a software company that allows intelligence services in the United States to run analytics for consolidating information and extracting insights and trends. It allows its customers the option to deploy their own software.

As we enter the mid of 2022’s final quarter, Palantir Technologies Inc. (NYSE:PLTR)’s shares have taken a beating on the stock market. As of its closing price on Friday, October 21, they have lost 55% of their value since the year started. However, Morgan Stanley still believes there’s some juice left in the stock, even as it reduced the company’s share price target to $10 from $11 in October 2022, highlighting that the low expectations will create ‘tactical’ opportunities. Insider Monkey’s June quarter of 2022 survey of 895 hedge funds revealed that 26 had invested in the firm.

Palantir Technologies Inc. (NYSE:PLTR)’s largest investor is Jim Simons’ Renaissance Technologies which owns 28 million shares that are worth $255 million.

12. Zoom Video Communications, Inc. (NASDAQ:ZM)

Number of Hedge Fund Holders: 44

Year to Date Share Price Drop: 56%

Zoom Video Communications, Inc. (NASDAQ:ZM) is a video communications software technology. The firm provides a software platform that allows people living in different corners of the world to communicate with each other, keep in touch with loved ones and run their businesses.

After having a blast on the stock market during the coronavirus pandemic, Zoom Video Communications, Inc. (NASDAQ:ZM)’s shares are now having a reality check. They are down 56% year to date, and nearing their pre-pandemic levels as high interest rates and a return to normal reduce the company’s attraction. As part of their portfolios for the second quarter of this year, 44 out of the 895 hedge funds tracked by Insider Monkey had invested in Zoom Video Communications, Inc. (NASDAQ:ZM).

Catherine D. Wood’s ARK Investment Management is Zoom Video Communications, Inc. (NASDAQ:ZM)’s largest investor in our database. It owns 9.5 million shares that are worth $1 billion.

11. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 38

Year to Date Share Price Drop: 57%

Roblox Corporation (NYSE:RBLX) is a software company that provides an entertainment platform for users to virtually interact with each other and play video games. Additionally, it also lets creators use its development studio to develop applications for its service.

Roblox Corporation (NYSE:RBLX)’s shares have dropped by a whopping 57% on the stock market year to date, but the company’s recent fortunes are looking much better. The shares soared by 20% in October 2022, after data for September revealed a 15% bookings growth. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 38 had held the company’s shares.

Out of these, Jim Simons’ Renaissance Technologies is Roblox Corporation (NYSE:RBLX)’s largest investor. It owns 11.5 million shares that are worth $380 million.

10. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 97

Year to Date Share Price Drop: 57%

PayPal Holdings, Inc. (NASDAQ:PYPL) is a payments platform provider that allows businesses and individuals to make both intra and inter country payments. The firm is headquartered in San Jose, California, the United States.

SMBC Nikko believes that PayPal Holdings, Inc. (NASDAQ:PYPL) has a strong business model when compared to its peers, but the firm’s new algorithm for growth that is due for an introduction next year might fail to impress. The company’s shares have lost 57% of their value this year, and 97 out of the 895 hedge funds polled by Insider Monkey in this year’s second quarter had invested in the firm.

PayPal Holdings, Inc. (NASDAQ:PYPL)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 17 million shares that are worth $1.2 billion

9. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

Year to Date Share Price Drop: 59%

NVIDIA Corporation (NASDAQ:NVDA) is an American semiconductor designer that sells graphics processing units (GPUs). These are used by both regular and enterprise customers, and they allow the users to run video games, operate data centers, create visualizations, and more.

Despite becoming the world’s most valuable chip company last year, NVIDIA Corporation (NASDAQ:NVDA) has not done well at all this year, especially as its second quarter financial results were hammered by inflation slicing through the firm’s gaming revenues. The shares have dropped by 59% year to date, and by the end of this year’s June quarter, 84 out of the 895 hedge funds part of Insider Monkey’s study had held NVIDIA Corporation (NASDAQ:NVDA)’s shares.

Out of these, Ken Fisher’s Fisher Asset Management is NVIDIA Corporation (NASDAQ:NVDA)’s largest investor through a $1.1 billion stake that comes courtesy of 7.5 million shares.

8. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 87

Year to Date Share Price Drop: 61%

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a graphics processing unit (GPU) and central processing unit (CPU) designer that sells products for computers, data centers, and gaming consoles. The firm is headquartered in Santa Clara, California, the United States.

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s growth spurt, which saw the company deliver consecutive earnings growth for more than year, came to a screeching halt earlier this year as the drop in personal computing sales led to the company reporting a wide gap for its upcoming third quarter earnings release. The stock market has not been kind to the shares either, and they have lost a painful 61% of their value year to date. Insider Monkey’s Q2 2022 profiling of 895 hedge funds revealed that 87 had held a stake in the company.

Ken Fisher’s Fisher Asset Management is Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest investor. It owns 25 million shares that are worth $1.9 billion.

7. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 184

Year to Date Share Price Drop: 62%

Meta Platforms, Inc. (NASDAQ:META) is the holding company for several social media platforms and applications, including one of the world’s largest social media networks Facebook. It also owns Instagram and WhatsApp.

Meta Platforms, Inc. (NASDAQ:META) is in the midst of transforming its social media platform Facebook into a metaverse-focused firm. The company also sells virtual reality headsets, and its founder and chief Mr. Mark Zuckerberg is personally overseeing the metaverse development. However, this has not stopped the stock market from decimating Meta Platforms, Inc. (NASDAQ:META)’s value. The stock has declined 62% year to date.

As this year’s June quarter ended, 184 out of the 895 hedge funds part of Insider Monkey’s survey owned Meta Platforms, Inc. (NASDAQ:META)’s shares.

Out of these, Ken Fisher’s Fisher Asset Management is Meta Platforms, Inc. (NASDAQ:META)’s largest investor. It owns 11.5 million shares that are worth $1.8 billion.

Giverny Capital mentioned the company in its Q3 2022 investor letter. Here is what the fund said:

“Our worst performers for the year-to-date have been painful. Meta Platforms, Inc. (NASDAQ:META) is down roughly 60%, and Carmax, Eurofins Scientific, Coherent and Ciena have lost about half their value. I’m wearing a dunce cap for Meta, as the changes Apple made to privacy tracking severely impacted Meta’s effectiveness at targeting ads to the right consumers. However, despite being compared recently to AOL by one analyst, Meta continues to capture enormous amounts of consumer attention: roughly 2.9 billion people use one of its sites every day. I believe it has a very long runway on monetizing those eyeballs, especially outside North America. For all its problems with ad tracking, and despite heavy investment in the so called metaverse, Meta should earn about $10 per share in 2022 and more next year. The stock, at $136 on September 30, reflects pessimism that Meta will ever recover. We’re holding because we think that Meta has the resources to improve its advertising efficiency, and that it eventually will.”

6. Confluent, Inc. (NASDAQ:CFLT)

Number of Hedge Fund Holders: 26

Year to Date Share Price Drop: 64%

Confluent, Inc. (NASDAQ:CFLT) provides a data streaming platform that allows its customers to process data and use real time data without risk through stream processing and stream governance.

Confluent, Inc. (NASDAQ:CFLT)’s shares have lost 64% of their value year to date, and Morgan Stanley reduced the company’s share price target to $38 from $42 in October 2022 as part of a broader software downgrade which maintained that low investor expectations provide for an opportunity to deliver. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 26 had held a stake in the company.

Confluent, Inc. (NASDAQ:CFLT)’s largest investor in our database is Brad Gerstner’s Altimeter Capital Management which owns 14.5 million shares that are worth $335 million.

Along with Peloton Interactive, Inc. (NASDAQ:PTON), Snap Inc. (NYSE:SNAP), and Lyft, Inc. (NASDAQ:LYFT), Confluent, Inc. (NASDAQ:CFLT) is another technology company that saw its share price heavily drop in 2022.

5. DoorDash, Inc. (NYSE:DASH)

Number of Hedge Fund Holders: 31

Year to Date Share Price Drop: 69%

DoorDash, Inc. (NYSE:DASH) is a delivery platform that lets merchants find new customers, make demand forecasts, and fine tune their products to demand. The firm is headquartered in San Francisco, California, the United States.

DoorDash, Inc. (NYSE:DASH)’s stock has been one of the worst performing stocks on the market this year, as the shares have bled 69% of their value so far. This drop has come on the back of a variety of factors, such as the macroeconomic environment, a rival partnering up with Amazon, and customer loss. Insider Monkey’s Q2 2022 survey of 895 funds outlined that 31 had invested in the company.

However, Wolfe Research stuck with a $110 share price target for the firm in August 2022, as it stressed that the market is under-appreciating DoorDash, Inc. (NYSE:DASH)’s partnerships with restaurants.

Lei Zhang’s Hillhouse Capital Management is DoorDash, Inc. (NYSE:DASH)’s largest shareholder. It owns 4.6 million shares that are worth $301 million.

4. Lyft, Inc. (NASDAQ:LYFT)

Number of Hedge Fund Holders: 35

Year to Date Share Price Drop: 70%

Lyft, Inc. (NASDAQ:LYFT) is a ridesharing platform provider that allows drivers to find rides and put their cars out for rent. It also offers transportation solutions for organizations.

With the regulatory backdrop getting tougher for the gig economy, it’s no surprise that Lyft, Inc. (NASDAQ:LYFT)’s shares have lost 70% of their value this year, as the company’s problems become compounded with weak purchasing power reducing demand, high gas prices, and weak earnings guidance. As part of their second quarter of 2022 holdings, 35 out of the 895 hedge funds polled by Insider Monkey had invested in the company.

Gordon Haskett however believes that the negative sentiment around Lyft, Inc. (NASDAQ:LYFT)’s shares is a bit excessive, as the firm upgraded the shares to Buy from Hold and kept a $24 share price target in October 2022.

Lyft, Inc. (NASDAQ:LYFT)’s largest investor is Panayotis Takis Sparaggis’ Alkeon Capital Management which owns 5.5 million shares that are worth $74 million.

Artisan Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

Lyft, Inc. (NASDAQ:LYFT), the second-largest ride-hailing company in the US, connects riders and drivers over a mobile app. When we began our GardenSM campaign, our thesis was based on a likely strong ridership recovery post-pandemic, as well as management’s growing focus on increasing profitability after years of heavy investment. While the company has made some progress on margins as the economy has re-opened, driver shortages and fuel inflation have disrupted that progress. Given uncertainty around when these cost pressures could abate, we exited our position.

3. Asana, Inc. (NYSE:ASAN)

Number of Hedge Fund Holders: 21

Year to Date Share Price Drop: 73%

Asana, Inc. (NYSE:ASAN) provides a work management platform that allows companies and workers to conduct their daily tasks, manage product launches, and run marketing campaigns. It serves the needs of both the public and private sectors.

The short interest in Asana, Inc. (NYSE:ASAN)’s shares reached a five month high in October 2022, as the shorted shares represented 26% of the company’s shares outstanding. This comes after the company’s shares have bled 73% of their value on the stock market this year, and Morgan Stanley warned in October that Asana, Inc. (NYSE:ASAN) is operating in a crowded environment. The bank reduced the company’s share price target to $28 from $35. 21 out of the 895 hedge funds part of Insider Monkey’s second quarter of 2022 survey had invested in the company.

Asana, Inc. (NYSE:ASAN)’s largest investor is Jay Chen’s Himension Capital which owns 4.2 million shares that are worth $74 million.

2. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 39

Year to Date Share Price Drop: 79%

Peloton Interactive, Inc. (NASDAQ:PTON) is a wellness company that provides an interactive fitness platform. This allows its users to exercise from home while engaging with friends and exercise groups over the Internet. The company is headquartered in New York, New York, United States.

Peloton Interactive, Inc. (NASDAQ:PTON) rode the coronavirus wave to touch record highs. During the pandemic, its shares appreciated by a whopping 726% as lockdowns forced consumers to use its products. However, since then, they have dropped below their pre-pandemic levels, and have lost a painful and devastating 79% of their value year to date.

By the end of this year’s second quarter, 39 out of the 895 hedge funds polled by Insider Monkey had held Peloton Interactive, Inc. (NASDAQ:PTON)’s shares.

Peloton Interactive, Inc. (NASDAQ:PTON)’s largest investor in our database is Anand Desai’s Darsana Capital Partners which owns 7.5 million shares that are worth $68 million.

Merion Road Capital mentioned the company in its Q3 2022 investor letter. Here is what the fund said:

“Peloton Interactive, Inc. (NASDAQ:PTON) is quite a different story. You may recall from my Q1 letter that I initiated a position in the stock given the potential for a new CEO to leverage the company’s passionate and engaged userbase. The investment had meaningful upside potential (multiples of the then trading price), but also presented real downside risk; as such, I kept our exposure to just a few percentage points of the portfolio. Fast forward six months and underlying trends like churn, engagement, and new users weakened dramatically. I sold our shares as the likelihood for the company to achieve financial success has become increasingly remote.”

1. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 44

Year to Date Share Price Drop: 83%

Snap Inc. (NYSE:SNAP) is known for its camera application that allows users to share their daily lives with followers and friends. The company is headquartered in Santa Monica, California.

Snap Inc. (NYSE:SNAP)’s shares dropped by another massive 30% by the close of October’s third week as the firm warned about weakening revenue from advertisements. This contributes to an eye watering 83% annual drop in the share price. While it lowered Snap Inc. (NYSE:SNAP)’s share price target to $10 from $14 in October 2022, UBS remained optimistic that the firm can recover its daily average users. Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 44 had invested in the firm.

Out of these, Snap Inc. (NYSE:SNAP)’s largest investor is John Overdeck and David Siegel’s Two Sigma Advisors which owns 14 million shares that are worth $184 million.

Silver Ring Value Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“I bought SNAP put options in the fall of 2021, when the stock was above $70 and its market cap around $100B. With revenues of ~ $4B in 2021, this put the company at a whopping 25x sales. I
refer to a multiple of sales only because the company wasn’t yet making a profit, despite its astronomical valuation.

I strongly believed that market participants were over-extrapolating a few years’ worth of high sales growth too far into the distant future. This growth was likely temporarily boosted as advertisers
experimented during COVID, attempting to reach customers in new ways. In other words, it was benefiting from unsustainable forces.

Having followed the media space for two decades, one thing that I have observed is that change happens slowly. Advertisers rarely abandon an old medium in a wholesale fashion or embrace a new one in such a way. Instead, they shift their budgets incrementally, experimenting and measuring Return on Investment (ROI) along the way…” (Click here to see the full text)