- Tech stocks, which swiftly bounced off the -10% territory, gave the market the illusion that the tech sector has been fully corrected.
- Mainly due to widespread supply shortage and seasonality, Q1 revenue (EPS) has been estimated to decrease by 10% (6%) for an average tech stock.
- If tech sector is currently valued based on its Q1 financials, tech stocks may see an immediate 8% downside.
- Partially due to the fading WFH demand, Q2 revenue (EPS) has been estimated to decrease by another 2% (4%) for an average tech stock.
- As a result, tech stocks may drop another 10% by Q2.
For further details see:
Tech Stocks Have More Room To Go Down