The U.S. market enter correction territory Thursday as the coronavirus outbreak continued to spook investors, causing not only exposed stocks to sell-off, but also impacted tech stocks that are largely unexposed to the economic impact.
Other tech stocks not exposed to the virus that are down considerably from recent 2020 highs:
- DropBox (DBX) - Get Report: -11.6%
- Pinterest (PINS) - Get Report: -19%
- Stitch Fix (SFIX) - Get Report: - 17.5%
“These companies have little or no Chinese revenue exposure,” said Eric Jhonsa, TheStreet’s Tech Columnist. “They also have little or no exposure to supply chain disruptions to hardware — they’re internet services companies. The exposure to Chinese demand or Chinese manufacturing are limited or nonexistent for these companies.”
Facebook likely fell hard because it’s in many funds that are indexed to the broader market and those funds are likely being pulled out of by investors, at least to some degree.
But Jhonsa also noted, “The market has just had a take no prisoner approach. Everything has been sold off pretty hard. People have been in a pretty risk-averse mood. That’s created some buying opportunities.”
Time to pick up some tech stocks?
Read Jhonsa’s piece on the stocks here: 4 Tech Stocks with Limited Coronavirus Exposure That Have Gone on Sale
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