- Technology shares have fallen significantly in recent months
- Last year, tech companies got a boost due to work-from-home norms
- With the return of the new normal, screen time is getting shortened
Of late, tech shares have had a bad time in global markets. They have fallen significantly as all other assets like start-ups and cryptocurrencies did. It is hard to say to what extent they will come down, they have declined significantly in recent time.
The NDXT, the index of the 100 largest tech companies on the NASDAQ, is down by a third since its peak in November. Companies in this index have lost a combined US$2.8 trillion in market value.
Some start-ups that were showing signs of growing very fast and were high flying also took a hit. For instance, the shares of Robinhood are 80% below the level in July.
Last year, technology got a boost due to work-from-home norms. Technology companies were encouraged to innovate and provide technology solutions to work from home. Now with back-to-office norms in place, people are turning away from screens. There is economic uncertainty that is making investors turn towards safer and bigger companies away from start-ups and risky tech companies.
Technology stocks on the NZX have also been down from their levels last year. Rising interest rates and geopolitical tensions have prompted investors to go for safe and well-established companies. The technology sector has seen a sharp sell-off of late.
Against this backdrop, let’s see how these three tech companies are performing.
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EROAD is a transport solutions provider. It provided its quarterly update for the quarter ended 31 March 2022. It said that it had appointed a new CEO with strong technology experience. Also, the Company had witnessed a growth of over 5,000 units in Q4FY22, reflecting impressive growth across all markets. The Company has a strong balance sheet and robust operational performance to report, therefore, is poised for growth in the future.
0n 13 May, the stock was trading down 4.04% at NZ$2.85, at the time of writing.
Geo Limited (NZX:GEO)
GEO is a leading SaaS provider for job management platforms. At the start of May, it provided its March quarter operating update in which, it declared that its product and technology team capability had doubled since November 2021. It had appointed new staff to support the accelerated go-to-market program.
The Company said that it had charted its growth plan and was on a hiring spree to support it.
On 13 May April, the stock was trading down almost 1.74% to NZ$0.113, at the time of writing.
PaySauce Limited (NZX:PYS)
PaySauce is an employment fintech that delivers HR solutions for payrolls. It provided its quarterly market update on 13 April saying that it delivered strong year-on-year growth of 87% in the quarter. It also reported a strong cash flow situation for the first time due to increased revenue and the acquisition of SmoothPay.
On 13 May, the stock was trading flat at 0.260, at the time of writing.
Tech shares have witnessed a significant fall in 2022 globally. In fact, all major tech companies are down significantly. NZ is also bucking the same trend.