Investors who tried to buy the dip in big technology stocks may be sitting on losses!
Many individual investors jumped into the market to buy tech stocks during Wednesday’s selloff.
Tweet on Retail investors buying the dip stocks
Retail investors jumped into the market to buy tech stocks during Wednesday's selloff.
— The_Journalbiz (@the_journalbiz) November 3, 2022
Vanda research chart on tech stocks
Some of the most popular buys among Fidelity customers yesterday were:
- ProShares UltraPro QQQ ETF
Several of these companies were trailing the broader market in trading Thursday, continuing a brutal stretch for tech that has left investors with big losses. Amazon slipped 2.5%, while Alphabet dropped around 3.2%. Apple shares lost around 3.6%.
Rising rates have hit shares of tech companies particularly hard, leading to one of the worst selloffs since the dot-com bubble burst. The downturn accelerated after the Federal Reserve on Wednesday raised interest rates and indicated rates would likely climb higher than expected.
For much of the year, individual investors have pounced on market drops, particularly in tech heavyweights, to buy more (you can read more about that here.) Analysts at Vanda Research wrote this week that “the sell-off in mega caps was seen as a buy-the-dip opportunity rather than a capitulation moment.”
*Many individual investors have flocked to stocks such as Meta, Apple, Amazon, Netflix, Alphabet, Microsoft and Tesla, according to Vanda.