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The stock-market pendulum swung in the other direction again Tuesday, though how exactly it treated investors' individual portfolios was largely contingent on how much technology and tech-esque exposure they had.
The major catalyst today was last night's announcement by Snap (SNAP) CEO Evan Spiegel that the company would fall well short of its internal current-quarter revenue and earnings estimates. "The macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month," he says.
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Snap shares cratered 43.1% in response Tuesday and sent shockwaves throughout the rest of the digital advertising space. Google parent Alphabet (GOOGL, -5.0%), Facebook parent Meta Platforms (FB, -7.6%) and Amazon.com (AMZN, -3.2%) were all swept up in the selling pressure.
Not only did that spark a flurry of single-stock downgrades from the analyst community, but CFRA's Sam Stovall downgraded the entire communication services sector.
"A rapid recovery in any area driven by advertising and consumer spending is not expected in the near to intermediate term," he says. "What's more, increased regulatory risk directed toward t
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