The tech sector is the latest to feel the effects of the global selloff in stocks.
Market darlings like Facebook and Alphabet (the owner of Google) are being dumped as investors worry that valuations have got ahead of earnings.
The big tech companies are still making money, lots of it.
But many tech companies are not making as much as investors had been counting on.
GoPro’s stock price fell from a peak of US$98 in October 2014 to as low as $9 last week, after announcing that its sales were slowing and it was going to have to cut prices and reduce the range of cameras it sells.
Professional social networking company LinkedIn plunged 44 percent in one day after announcing an earnings forecast that was weaker than expected.
Investors were spooked when the company’s Chief Executive said both Europe and China are slowing down.
Nobody is quite sure how bad the global slowdown is, especially in places like China.
So that means a growing number of professional investors are saying “sell now, ask questions later.”
