How US technology sector lost more than $7 trillion in a year?!‎

Seems like an eternity, but it’s only been a year. At that time in 2021, when the Nasdaq Composite Index peaked, it has doubled since the early days of the pandemic. US automaker Rivian’s groundbreaking initial public offering was the latest in a record year for new issuances. Employment at the time was booming and tech employees were enjoying the high value of their stock options.

Billion losses:

Twelve months later, the full picture is completely different. Not one of the 15 most valuable US technology companies achieved positive returns in 2021. US technology company Microsoft has lost more than approximately $700 billion of its market value. While Meta’s market value has shrunk by more than 70% from its highs, wiping out more than $600 billion in tech companies’ value this year. In total, investors lost nearly $7.4 trillion, due to the 12-month decline in the Nasdaq, according to CNBC.

Higher interest rates have impeded access to easy capital, and high inflation has made all those companies that promise future profits much less valuable today. Cloud stocks tumbled along with cryptocurrencies

Harsh measures:

Companies suffered greatly, so they resorted to harsh measures, including cutting costs, freezing new jobs and laying off workers. Also, employees who joined pre-IPO companies and took much of their compensation in the form of stock options suffered a huge loss and can now only hope for a recovery in the future.

Review ratings:

Initial public offerings (IPOs) this year have slowed considerably after iconic years in 2020 and 2021, when companies navigated the pandemic and benefited from an emerging world of remote work and an economy flowing with government-backed money.

The coffers of investment banks and venture capital firms swelled

Rivian has fallen more than 80% from its peak after reaching a market cap of more than $150 billion. The Renaissance IPO Fund, a basket of newly listed US companies, fell 57% over the past year.

Wrong Bet

Technology executives have admitted they were wrong in betting that the coronavirus pandemic has changed the way we live and the economy. Indeed, COVID-19 has not changed forever how we work, play, shop and learn. Hiring and investing as if video meetings are going to last forever, working out in the living room and avoiding planes, indoor malls and restaurants are all – as it turns out – a bad bet.

The report asked about other mistakes in the industry that led to these billion losses