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Tech Stocks Continue to Tumble While Retailers Climb

Tech stocks continue to tumble on inflation worries today, April 14, 2022.  The NASDAQ dropped almost 2% on the day, while the S&P 500 was down 1%.

Shares of Apple (AAPL), Nvidia (NVDA) and The Trade Desk (TTD) were all lower on the day. Meanwhile, retailers had a better today as shares of Nike (NKE), Target (TGT) and Dollar General (DG) rose.

Shares of Apple (AAPL) were down 3% to $165 on the day. Consumers and businesses were investing in computers and related equipment the past two years due to COVID-19 and work-from-home. Tech stock growth rates are now simmering down, and that could mean AAPL having profit growth slow to the 12-15% range moving forward.

Shares of Nvidia (NVDA) dropped 4% to close at $212. NVDA has gotten caught in a growth stock Bear Market, and that’s taken the shares down from $273 to $212 this month. Yet, the company continues to see strong demand for hybrid work environment, shift to high-end workstations, compute products, robust Steam user growth, and record strength for RTX processors.

The Trade Desk (TTD) dropped 5% on the day to close at $64. The Trade Desk is a cloud-based software platform which allows advertising executives to manage digital ad campaigns across different spectrums — such as TV or the Internet — utilizing real-time data. The company relays on advertisers to continue to increase their spending, which could be tough during a recession.

Retailer Stocks Climbed

Shares of Nike (NKE) rose 5% today to close at $133.

Nike is considered the world’s largest sports apparel company and it is popularly known for its footwear, apparel, and equipment such as Nike, Converse, and Jordan brand. Nike was founded in 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight and they initially sold imported Japanese running shoes.

Shares of Target (TGT) rose 2% to close at $237 while shares of Dollar General (DG) rose 1% to close at $249.

Chart of the Day

Our chart of the day is this one-year chart of FactSet Research (FDS). FDS closed at $421, down 2% on the day.

Factset Research provides market intelligence on securities, companies, and industries that equips clients with the right research investment tools and ideas so they can personally analyze, monitor, and manage their portfolios.

Factset’s buy-side clients include portfolio managers, analysts, traders and wealth managers. Sell-side clients include firms that perform mergers and acquisitions, advisory work, among others.

The big statistic analysts look at when evaluating FDS is the Annual Subscription Value (ASV) of contracts clients sign. During the past 4 qtrs, ASV has grown from 5.8% to 7.2%, 9.2%, and now 9.4%.

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