In this piece, we will take a look at the fifteen worst performing technology stocks in 2023. If you want to skip a background on the tech sector and particularly the stock market, then take a look at 5 Worst Performing Tech Stocks in 2023.
When it comes to mega cap stocks, the technology sector has been the best performing segment on the stock market during the first half of 2023. This sharp rebound came after the sector tumbled during the turbulent economic environment last year that saw significantly higher fuel prices lead to soaring inflation. During this turmoil, the consumer technology sector was hit particularly hard, with chip firms for instance finding it difficult to ship sufficient products into the market. The worsening consumer environment was dealt an added blow when the Federal Reserve acted fast to combat inflation by rapidly increasing interest rates. Such a decision has several broad implications, one of which was a disruption in the bond market which made fresh debt more lucrative than previously issued securities.
However, while dismay in the bond caused mayhem in the banking industry in March, the technology sector soared to reverse all of its 2022 losses and add a little bit of gains on top. For instance, the S&P 500 Information Technology stock index had stood at 3,107 points in December 2021, and after dropping to roughly two thousand points at the bottom in October 2022, went on to touch 3,167 in mid July 2023. Technology stocks, defying all expectations, had performed well even when interest rates had touched multi decade highs. This trend has started to taper off a bit during the current quarter, as the index is down by a marginal 1.74% as of early August. Yet, the S&P technology index and the NASDAQ 100’s year to date returns are roughly the same, with the former trailing the latter by 100 basis points. Some notable firms that rode the tech wave in H1 2023 are Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms, Inc. (NASDAQ:META), and Tesla, Inc. (NASDAQ:TSLA).
The tilt of the 2023 stock rally towards big tech becomes clear when we look at the S&P SmallCap 600 Capped Information Technology index. As compared to the 39.59% in returns offered by the technology index, the small cap index has yielded 17.7% – missing out on the premium that mega cap stocks enjoy due to their liquidity, brand awareness, and interest in emerging new technologies such as artificial intelligence. And, not all stocks have delivered strong returns in 2023 either. One of the worst performing firms in terms of stock market performance has been the penny stock Akumin Inc. (NASDAQ:AKU). A nano cap stock, Akumin is a medical services provider with services such as magnetic resonance imaging (MRI) and computational tomography (CT) scans. Its shares have been on a downturn since 2021 and currently trade for less than a dollar.
If Akumin Inc’s 75% year to date drop is too less for your taste, then consider a stock that is down 99.38% in 2023. Allarity Therapeutics, Inc. (NASDAQ:ALLR), a firm that is developing treatments for breast cancer, has seen a woeful 2023. A decision to announce a reverse stock split and an attempt to raise $11 million in equity while it was worth $4 million on the stock market are some events that have colored its share price red this year. The stock tanked by nearly a quarter in one day after the $11 million capital raise decision. This announcement had come after the firm had delayed its cancer trials due to a lack of enrollment, and year to date, the stock is down 99.38% to currently trade at $2.24. Safe to say, Allarity is not having a good day on the stock market.
As for the outlook for the technology sector for the rest of this year, much depends on the future course of action taken by the Federal Reserve and the ability of the economy to withstand high interest rates for a longer period. While Q2 2023 economic growth remains robust, the full impacts of the interest rate hikes might not have rippled through the economy so far, and agencies such as Fitch continue to forecast a recession despite others such as Bank of America Corporation (NYSE:BAC) and JPMorgan Chase & Co. (NASDAQ:JPM) having revisited their earlier forecasts predicting recession.
With these details in mind, let’s take a look at the worst performing technology stocks in 2023, out of which the particularly ill fated ones are Satixfy Communications Ltd. (NYSE:SATX), AERWINS Technologies Inc. (NASDAQ:AWIN), and Ascent Solar Technologies, Inc. (NASDAQ:ASTI).
Our Methodology
To compile our list of the worst performing technology stocks in 2023, we ranked all technology firms according to their year to date performance and then picked the top 15 of them in terms of year-to-date losses. While we could have narrowed the list down by market capitalization, for instance by setting minimum market capitalization, this was avoided since the list would miss out on some firms with rather sizeable percentage point share price drops.
Worst Performing Tech Stocks in 2023
15. Meta Materials Inc. (NASDAQ:MMAT)
Year To Date Losses As Of August 6, 2023: 78.18%
Meta Materials Inc. (NASDAQ:MMAT) is a materials science firm that sells products used in MRI scanners and other applications. The stock last tumbled in April when it announced a new public placement.
During Q1 2023, nine of the 943 hedge funds polled by Insider Monkey had invested in the firm. Meta Materials Inc. (NASDAQ:MMAT)’s biggest investor is Israel Englander’s Millennium Management with a $604,000 stake.
Along with AERWINS Technologies Inc. (NASDAQ:AWIN), Satixfy Communications Ltd. (NYSE:SATX), and Ascent Solar Technologies, Inc. (NASDAQ:ASTI), Meta Materials Inc. (NASDAQ:MMAT) is one of the worst performing tech stocks this year.
14. AgileThought, Inc. (NASDAQ:AGIL)
Year To Date Losses As Of August 6, 2023: 80.81%
AgileThought, Inc. (NASDAQ:AGIL) is an American technology consulting firm. The firm has been in a bit of turmoil as of late, as its chief financial officer resigned in July and a replacement was already in place.
By the end of this year’s first quarter, seven of the 943 hedge funds part of Insider Monkey’s database had bought a stake in AgileThought, Inc. (NASDAQ:AGIL). Out of these, the firm’s largest shareholder is Israel Englander’s Millennium Management with a stake worth $629,000, which was a new position added during the quarter.
13. Movella Holdings Inc. (NASDAQ:MVLA)
Year To Date Losses As Of August 6, 2023: 81.6%
Movella Holdings Inc. (NASDAQ:MVLA) is a technology consulting firm that provides corporate customers with services to integrate technologies such as artificial intelligence into their business operations. The stock tanked in February after it listed its shares on the NASDAQ exchange by merging with a SPAC.
17 of the 943 hedge funds polled by Insider Monkey for their Q1 2023 shareholdings had invested in Movella Holdings Inc. (NASDAQ:MVLA).
12. Verb Technology Company, Inc. (NASDAQ:VERB)
Year To Date Losses As Of August 6, 2023: 83.44%
Verb Technology Company, Inc. (NASDAQ:VERB) is a software as a service (SaaS) company whose platform allows video based software products such as webinars and other solutions. Its financial turmoil is evident from the fact that it sold its sales division assets in June to make room for core technology development.
Insider Monkey dug through 943 hedge funds for their March quarter of 2023 investments and found out that two had invested in the firm. Out of these, Verb Technology Company, Inc. (NASDAQ:VERB)’s largest investor is Hal Mintz’s Sabby Capital with a $1 million stake.
11. WiSA Technologies, Inc. (NASDAQ:WISA)
Year To Date Losses As Of August 6, 2023: 87.58%
WiSA Technologies, Inc. (NASDAQ:WISA) is a small electronics firm that supplies chip products for consumer electronics audio systems. It had a solid first quarter that saw it heavily beat analyst EPS estimates, but the shares have been on a downward spiral since February.
During 2023’s March quarter, only one hedge fund out of the 943 that were part of Insider Monkey’s database had invested in the firm. This lone WiSA Technologies, Inc. (NASDAQ:WISA) investor is Hal Mintz’s Sabby Capital with a $180,998 investment.
10. Marti Technologies, Inc. (NYSE:MRT)
Year To Date Losses As Of August 6, 2023: 88.93%
Marti Technologies, Inc. (NYSE:MRT) is a Turkish company that operates a fleet of vehicles for users to utilize for their transportation needs. The firm listed its shares for trading on the NYSE through a SPAC merger on July 11th, and the shares fell by 47.4% during the first day of trading alone.
9. Inpixon (NASDAQ:INPX)
Year To Date Losses As Of August 6, 2023: 89.63%
Inpixon (NASDAQ:INPX) is a technology company that enables users to scan their indoor environments and manage the space by using technology. The firm has announced that it is merging with an aircraft design company and the transaction is expected to close by Q4 2023.
After sifting through 943 hedge fund portfolios for this year’s first quarter, Insider Monkey discovered that one had held Inpixon (NASDAQ:INPX)’s shares. This investor was Steven Cohen’s Point72 Asset Management which owned $10,750 worth of shares.
8. WeTrade Group, Inc. (NASDAQ:WETG)
Year To Date Losses As Of August 6, 2023: 89.72%
WeTrade Group, Inc. (NASDAQ:WETG) is a Chinese technology company that offers payment processing and other services to small companies and individuals. The stock is down 89.72% year to date, with some of the performance likely tied to China’s weak economic environment.
Two out of the 943 hedge funds surveyed by Insider Monkey had held a stake in WeTrade Group, Inc. (NASDAQ:WETG) as of Q1 2023.
7. Near Intelligence, Inc. (NASDAQ:NIR)
Year To Date Losses As Of August 6, 2023: 90.40%
Near Intelligence, Inc. (NASDAQ:NIR) is a cloud company that provides customer management and marketing services. The stock was rated Speculative Buy by Benchmark in July 2023 and Outperform by Northland in April 2023.
As of March 2023, nine of the 943 hedge funds surveyed by Insider Monkey had bought a stake in Near Intelligence, Inc. (NASDAQ:NIR).
6. Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS)
Year To Date Losses As Of August 6, 2023: 92.21%
Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS) is a Chinese software company that provides business customers with a platform to manage their financial, operational, and manufacturing platforms. Its shares are currently under scrutiny by the NASDAQ exchange, and the firm is shaking things up as it announced the establishment of a new agricultural technology joint venture in July 2023.
Satixfy Communications Ltd. (NYSE:SATX), Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS), AERWINS Technologies Inc. (NASDAQ:AWIN), and Ascent Solar Technologies, Inc. (NASDAQ:ASTI) are some of the worst performing technology stocks in 2023.
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Disclosure: None. 15 Worst Performing Tech Stocks in 2023 is originally published on Insider Monkey.
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