In this piece, we will take a look at the five biggest technology stock drops in 2022. If these drops aren’t enough for you then you can jump back to 15 Biggest Tech Stock Drops 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)
Disclosure: None. You can also take a look at 12 Best Bear Market Stocks To Buy Now and 10 Biggest Industries In the US.
