3 Tech Stocks That Have Entered Correction Territory

InvestorPlace08-14

The recent corrections in the share prices of many tech stocks highlight the complexities of investing in the tech sector. Confluent (CFLT): Slowing growth rates have led to fears that Confluent’s ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2459122837?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-08-14 19:25","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2459122837","market":"us","top_or_hot":-1,"title":"3 Tech Stocks That Have Entered Correction Territory","media":"InvestorPlace","content":"<div>\n<p>The recent corrections in the share prices of many tech stocks highlight the complexities of investing in the tech sector.\nConfluent (CFLT): Slowing growth rates have led to fears that Confluent’s ...</p>\n\n<a href=\"https://investorplace.com/2024/08/3-tech-stocks-that-have-entered-correction-territory/\">Source Link</a>\n\n</div>\n","source":"investorplace_stock_picks","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Tech Stocks That Have Entered Correction Territory</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Tech Stocks That Have Entered Correction Territory\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-14 19:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/08/3-tech-stocks-that-have-entered-correction-territory/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The recent corrections in the share prices of many tech stocks highlight the complexities of investing in the tech sector.\nConfluent (CFLT): Slowing growth rates have led to fears that Confluent’s ...</p>\n\n<a href=\"https://investorplace.com/2024/08/3-tech-stocks-that-have-entered-correction-territory/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BMPRXQ63.HKD","symbol_name":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","start_time":0,"source_url":"https://investorplace.com/2024/08/3-tech-stocks-that-have-entered-correction-territory/","article_id":"2459122837","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2459122837","pubTimestamp":1723634700,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"Explore the key factors driving several prominent tech stocks into correction territory, from valuation concerns and slowing growth.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","SQQQ":"纳指三倍做空ETF","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","QLD":"纳指两倍做多ETF","IE00B3SWFQ91.USD":"PIMCO BALANCED INCOME AND GROWTH \"E\" (USD) INC","BK4581":"高盛持仓",".IXIC":"NASDAQ Composite","BK4504":"桥水持仓","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","IE00BZ9MQY76.HKD":"FTGF CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (HKD) ACC","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","PSQ":"纳指反向ETF","IE00B894F039.SGD":"Legg Mason ClearBridge - US Aggressive Growth A Acc SGD-H","CMT":"Core Molding Technologies Inc","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0072462426.USD":"贝莱德全球配置 A2","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","LU0056508442.USD":"贝莱德世界科技基金A2","PCOR":"Procore Technologies","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0080751232.USD":"富达环球多元动力基金A","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","CFLT":"Confluent, Inc.","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4587":"ChatGPT概念","BK4508":"社交媒体","QID":"纳指两倍做空ETF","QTEC":"First Trust NASDAQ 100 Technology Index Fund","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE00B19Z9Z06.USD":"Legg Mason ClearBridge - US Aggressive Growth A Acc USD","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","BK4577":"网络游戏","BK4579":"人工智能","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","BK4588":"碎股","PINS":"Pinterest, Inc.","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","BK4503":"景林资产持仓","TQQQ":"纳指三倍做多ETF"},"translate_title":"3只已进入调整区域的科技股","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"QTEC":1,"PINS":1,"PCOR":1,"CFLT":1,"CMT":1,".IXIC":0.9,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"TQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"The recent corrections in the share prices of many tech stocks highlight the complexities of investing in the tech sector.\nConfluent (CFLT): Slowing growth rates have led to fears that Confluent’s high valuation may not be justified.\nPinterest (PINS): The company has been struggling to effectively monetize its platform, especially compared to larger social media competitors.\nProcore Technologies (PCOR): Fears of a potential recession and its impact on the cyclical construction industry are weighing on Procore’s stock.\n\n\n\n\n\n \n\nSource: Jim Vallee / Shutterstock.com\n\n\n\nWall Street pays significant attention to the technology sector as tech companies typically deliver substantial returns to investors. However, the volatile nature of this industry means that tech stocks can especially short-term experience downturns. This volatility is typically a result of macroeconomic factors, company-specific challenges and market sentiment. Recently, the First Trust NASDAQ-100-Technology Sector Index Fund (NASDAQ:QTEC) has seen a decline of nearly 4% in July and another 6% in August, although it remains up 1.5% year-to-date. \nWhen the broader economy raises concerns, investors become increasingly wary of tech companies that deliver less-than-perfect growth rates. This earnings season, we are witnessing notable declines in share prices of many tech names. In most cases, they have failed to announce strong results that justify high valuation metrics.\nTherefore, in this article, we will discuss three tech stocks that have recently entered correction territory, each seeing a decline of more than 10% from their recent highs.\nConfluent (CFLT)\nSource: ShutterstockOur first stock is Confluent (NASDAQ:CFLT), a player in the real-time data streaming space. Confluent offers two main products: Confluent Cloud, a managed cloud-native service, and Confluent Platform, an enterprise-grade self-managed software. These products facilitate the connection and processing of data in real-time. \nAs we write, Confluent’s stock is trading around $20.00. Yet, the company has seen its stock price dip significantly in recent months. For example, over the past month, it has lost well over 20%. Similarly, since the start of the year, CFLT shares have shed more than 13%.\nConfluent went public in June 2021 amid high expectations, but it has struggled to maintain its lofty valuations as market conditions have changed. At present, the forward price-to-earnings (P/E) ratio for CFLT stock is over 87x. Overall, its valuation metrics are a lot higher than the industry average.\nWhile Confluent continues to expand its customer base and revenue, growth has slowed compared to the earlier stages of its public life. This deceleration has made it challenging for the company to achieve profitability, with the most recent earnings reporting a loss of nearly $90 million.\nConfluent also faces competition from larger players like Amazon’s (NASDAQ:AMZN) Amazon Web Services (AWS) and Microsoft’s (NASDAQ:MSFT) Azure, which offer their own real-time data streaming solutions. Although Confluent’s platform is specialized, the presence of such formidable competitors raises concerns about its ability to capture market share in the long term.\nHowever, Wall Street is still bullish on CFLT shares with a 12-month median price target of $31.00. Such an up move would mean a gain of well over 50%. Yet, we believe the immediate market sentiment appears cautious for tech stocks like CFLT, with concerns over competitive pressures and macroeconomic factors.\nPinterest (PINS)\nSource: DANIEL CONSTANTE / ShutterstockThe social media platform Pinterest (NYSE:PINS) has also entered correction territory. The company is known for its visually-driven search and discovery engine. In late June, PINS shares were trading over $45, but now, Pinterest stock is around $29.\nOne of the primary reasons for Pinterest’s stock decline is the slowdown in user growth. After a pandemic-driven surge, the platform has struggled to maintain its user base, particularly in the U.S., its most lucrative market. There are concerns that Pinterest may have reached saturation in some areas, and its ability to reignite growth is uncertain. Following recent quarterly results, management provided a lower-than-expected sales outlook.\nIn addition to slowing user growth, Pinterest has struggled to effectively monetize its platform. Despite progress in building its advertising capabilities, it still lags behind social media giants like Facebook and Instagram, both owned by Meta Platforms (NASDAQ:META). In a tightening economic environment, advertisers remain cautious. And Pinterest has had difficulty convincing them it can deliver the same return on investment as its larger rivals.\nMoreover, the shift towards video content on social media platforms has not played to Pinterest’s strengths. At present, platforms like TikTok and Instagram continue to dominate the short-form video space. As a result, Pinterest’s relatively static content offering may be seen as less appealing to both users and advertisers.\nNonetheless, analysts have a favorable long-term opinion on PINS stock as evidenced by a price target of $44.00. Such a move would mean a return of about 52%. As Pinterest continues to navigate numerous challenges, its ability to innovate in a competitive market will be crucial for its long-term success.\nProcore Technologies (PCOR)\nSource: monticello / Shutterstock.comWe conclude our discussion with Procore Technologies (NYSE:PCOR), a cloud-based construction management software company, which went public in May 2021. Like many recent IPOs especially among tech stocks, Procore’s stock initially soared but has since entered correction territory.\nSince late July, PCOR shares have declined around 25%. A significant factor behind this decline is the market’s shift away from high-growth, unprofitable tech companies. More investors want to put their hard-earned cash into toward more stable, profitable enterprises.\n Procore has yet to achieve profitability, which concerns investors despite strong revenue growth. The latest earnings report showed a reduced net loss of $6.3 million, down from $52.9 million a year ago. However, revenue guidance for the next quarter fell short of expectations, and slowing customer growth raised concerns about future prospects. In the current high-interest-rate environment, unprofitable tech companies like Procore are particularly vulnerable, as the cost of capital rises and investors become more risk-averse.\nMeanwhile, the construction industry Procore serves faces challenges, including economic cycles, rising material costs, labor shortages, and supply chain disruptions. These factors may limit construction companies’ ability to invest in new software solutions like Procore’s.\nYet Wall Street believes the decline should be over for Procore share price. Analysts currently expect PCOR stock to rally around 21% from the current levels.\nOn the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.\nOn the date of publication, the responsible editor did not have (either directly orindirectly) any positions in the securities mentioned in this article.\nTezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the U.S. and U.K. and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to investing.com and the U.K. website of The Motley Fool.Cloud, Communications, Media, Social Media, Technology\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/08/3-tech-stocks-that-have-entered-correction-territory/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.4","shortVersion":"4.26.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2459122837"}