FSLY - Why Many High-Flying Tech Stocks Are Falling Today
Many market-darling tech stocks are taking a deep dive today because of the developing coronavirus outbreak. Social media specialist Snap (NYSE: SNAP) fell as much as 6.6% Thursday morning, while cloud computing expert Fastly (NYSE: FSLY) dropped 10.6% at most. Video content manager Telaria (NYSE: TLRA) bottomed out at a 12.9% decline.
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The virus weighs heavily on the entire market right now, driving both the S&P 500 and Dow Jones 1.7% lower. High-flying growth stocks are more vulnerable to this market correction, as many investors are fleeing higher-risk investments. Whether they reinvest their assets in more stable companies or keep their cash off the market altogether, these moves are taking a toll on stocks with lofty valuations.