Why Tech Stocks Are Lagging the S&P 500

The video discusses the impact of trade tensions between the US and China on tech stocks, highlighting the challenges faced by companies like Apple. It explores the volatility in the tech market, driven by various narratives and the performance of Fang stocks. The discussion also covers the influence of rising interest rates on tech companies, noting their minimal exposure to such changes. Finally, the video examines the IPO environment for private tech companies, considering market conditions and the timing of public offerings.

What was one of the reasons for the sell-off in tech stocks mentioned in the video?

• A decline in global internet usage

• Increased competition from European tech companies

• New regulations on social media platforms

• Trade tensions between the US and China

How are Apple's challenges different from those of Facebook and Amazon?

• Apple's main issue is competition, while Facebook and Amazon face regulatory challenges.

• Apple is struggling with user privacy, unlike Facebook and Amazon.

• Apple is dealing with declining user engagement, unlike Facebook and Amazon.

• Apple faces issues with its supply chain, while Facebook and Amazon have market opportunity challenges.

What does the chart in the video suggest about the NASDAQ compared to the S&P 500?

• S&P 500 companies are taking a larger leg higher than NASDAQ companies

• NASDAQ companies have more companies above their 50-day moving averages

• NASDAQ companies are outperforming S&P 500 companies

• NASDAQ companies are more stable than S&P 500 companies

What is a potential impact of rising interest rates on tech companies?

• Higher cost of equity

• Increased exposure to wage inflation

• Decreased cash reserves

• Lower demand for tech products

What is one reason tech companies might be less affected by rising interest rates?

• They have large cash reserves

• They are heavily invested in real estate

• They rely on short-term loans

• They have high levels of debt

Why might some private tech companies delay going public?

• To wait for more favorable market conditions

• To avoid high taxes

• To expand into new markets

• To increase their workforce

What is a challenge for tech startups in the current market environment?

• Increased regulatory scrutiny

• Choppy markets affecting IPOs

• High competition from established companies

• Lack of venture capital funding