The S&P 500’s 10 biggest losers this year have lost $1.6 trillion in market capital

Traders work at the NYSE floor. Thomson Reuters
Here are the top 10 percentage decliners of the S&P 500 in a year that was losing for US stocks. Meta, Tesla, Match and Match all made it as their shares suffered losses exceeding 60%. Market value of $1.6 trillion was lost by the 10 biggest S&P 500 stock losers.

After a year of turbulent losses, equity investors are eager to welcome 2022.

The bear market was caused by the Russian war in Ukraine, and central banks reacting to high inflation with huge rate increases. The S&P 500 was expected to drop 20% and the Nasdaq Composite would see a decrease of 30%.

Another way to look at the carnage is that 70% of the S&P 500 companies were logging negative returns by 2022.

As higher borrowing costs impact the future value of future profits, large-cap tech stocks like Amazon and Apple were downgraded. High-profile tech companies like Meta and Microsoft have collectively laid off thousands of employees as recession fears mount.

The S&P 500’s 10 largest stock-price drops have combined to wipe out more than $1.6 trillion in market value.

These are the 10 largest losers of the benchmark index in 2022, based on percentage.

10. PayPal

PayPal App’s new Rewards Section interface.

Ticker: Performance of PYPL YTD: -63.4% Market Value Decline: $142.49 Billion

The digital payments processor, like many other tech companies, is experiencing a slowdown following a pandemic boom. The net new accounts increased by 2.9million in the third quarter compared to 13.3million in the previous year. Analysts were told by CEO Dan Schulman that the macro environment is difficult due to inflationary pressures in Europe, the US and a possible shallow recession in the US. However, shares rose earlier in December after Schulman said that fourth-quarter earnings per share were “slightly ahead” compared to its expectations.

9. V.F. Corp.

Backcountry

Ticker: VFCYTD Performance: 64.4% Market Value Decline : $18.6 Billion

The North Face, Supreme and Vans are just a few of the apparel brands that The North Face owns. Steve Randle, its CEO, has abruptly resigned. According to the Denver-based company, this year has been difficult for them as they navigate through a “more disruptive global marketplace” that is characterized by COVID-related problems in China and consumer uncertainty.

8. Signature Bank

Signature Bank’s share price performance in 2022.

Ticker: Performance of SBNY YTD: -64.5% Market Value Decline: $12.4 Billion

At a Goldman Sachs investor conference, CEO Joe DePaolo said that “we are not just crypto banks”

As the crypto winter, which has seen the value of the cryptocurrency market fall from its peak of over $1 trillion to its current low of less than $1 trillion, has caused the bank’s shares to be hit. Additionally, crypto deposits at the bank are down. Signature announced plans to reduce crypto-related deposit by $8 billion to 10 billion. On November 2, Signature announced that its crypto-related deposits would be reduced by $8 billion to $10 billion.

7. Meta Platforms

Mark Zuckerberg at Facebook’s first ever Meta StoreFacebook/Meta
Ticker: METAYTD Performance: 64.9% Market Value Decline : $611.17 billion

Investors have mostly criticized Mark Zuckerberg, the CEO and major shareholder of the company, for his metaverse ambitions which led to Facebook’s last-year rebranding. The company’s Reality Labs unit, which focuses on virtual-world technology, has seen a loss of nearly $20 billion in the past year. Meta has been urged by a prominent investor to reduce its Reality Labs investments.

Zuckerberg, well aware of the backlash said recently that 80% of Meta’s investments are still being directed to its core social business. Meta’s value has dropped by more than $80billion, a significant reduction in Zuckerberg’s wealth of more than $44billion.

6. Tesla

Nora Tam/South China Morning Post via Getty Images

Ticker: TSLA YTD Performance -65% Market Value Decline : $703.12 Billion

Elon Musk, the CEO of EV maker Tesla, was pushed from his position as the world’s wealthiest man by the lowering of its stock price. There were a few factors at play here. Musk blames the Federal Reserve for driving down Tesla’s valuation. He claims that its aggressive rate rises have pushed up US Treasury yields, increasing the appeal of low-risk debt over more risky assets. Analysts and investors believe that Tesla’s loss of billions of dollars in Tesla shares sales and Musk’s focus on Twitter following his controversial $44 Billion acquisition of the social media website in October has hurt it.

China’s supply chain issues have been a problem, but the company was able to record monthly sales in 2022. The Bloomberg Billionaires Index shows Musk’s net worth has fallen by $130 billion.

5. Catalent

A laboratory technician handles vials during filling and packing tests for the University of Oxfords COVID-19 candidate vaccine candidate, AZD1222. This was done on a high performance aseptic vial filling machine at Catalent in Anagni on September 11, 2020, during the COVID-19 virus infection.
Ticker: Performance of CTLT YTD: – 66.1% Market Value Decline: $15.1 Billion

Contract manufacturer for pharmaceutical, biotech, and consumer health companies has been involved in the production of coronavirus vaccines. The company noted that coronavirus infections are slowing worldwide and has cut its 2023 revenue projections to $4.63 billion to $4.88 million.

4. SVB Financial Group

Silicon Valley BankRafael Henrique/SOPA Images/LightRocket via Getty Images
Ticker: SIVBYTD Performance: -68% Market Value Decline – $27 Billion

Silicon Valley Bank is “good proxy for deal flows in Tech,” Bespoke Investment Group stated in October. This was after SVB shares plunged by double-digits in the fourth quarter results. It has lowered its 2022 outlook on net interest income due to market challenges that have impacted liquidity flows to private businesses and the general tech landscape, which is being affected by rising borrowing costs and fears of recession.

The global IPO market volume has dropped 45%, making it a difficult year for innovative companies looking to go public.

3. Align Technology

dardespot/Getty Images
Ticker: ALGNYTD Performance: -69% Market Value Decline = $35.8 Billion

Yahoo Finance’s CEO Joe Hogan stated earlier this year that Invisalign clear braces was under pressure from high inflation and supply chain restrictions. He said that China’s second-largest market was suffering from “shutdowns” and that it had really affected his business. His observations were made months before China began to relax its strict zero COVID policy. Economists generally agree that this should stimulate growth and possibly re-ignite inflation.

2. Match Group

Tinder mobile app as background for Tinder profiles. Beata Zawrzel/NurPhoto via Getty Images
Ticker: MTCHYTD Performance: Market Value Decline of -69.3%: $26.2 Billion

The shares of Match.com, Tinder, Plenty of Fish, and other dating websites’ parent company have fallen to their lowest level since 2015. Due to a slowing revenue growth, the company has seen a decrease in customers who are younger and more able to spend. Match claims that its visibility to 2023 is “challenging”.

1. Generac Holdings

Captain Electric worker inspects the final installation of a 24-kilowatt Generac home-generator on February 18, 2021, Orem, Utah. Photo by George Frey/Getty Images
Ticker: GNRC YTD Performance : -73.8% Market Value Decline: $16.6 Billion

As people studied and worked at home, the demand for backup generators grew. Since then, residential sales of the power systems manufacturer have slowed while industrial and commercial sales have increased. Generac lowered its 2022 sales outlook last month, further reducing the stock’s value from its pandemic-era highs.

Business Insider has the original article.
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By: insider@insider.com (Carla Mozée)
Title: The 10 biggest losers in the S&P 500 this year have erased $1.6 trillion in market value
Sourced From: markets.businessinsider.com/news/stocks/worst-performing-stocks-meta-tesla-tech-inflation-economy-sp500-2022-12
Published Date: Tue, 27 Dec 2022 16:23:55 +0000