Tech Stocks Bouncing Back?

May has been a rough month for tech stocks, even as many companies have posted record earnings. This past month saw a huge selloff in the stock market, particularly in the tech sector. Yesterday was finally a decent day of trading for tech stocks. Today saw prices dip slightly from yesterday, but it’s still an improvement from the past few weeks.

The NASDAQ Composite was down .04% today, but it outperformed the S&P 500 (-0.21%) and the Dow Jones Industrial Average (-0.24%). The NASDAQ is up a total of 2.67% for the last 5 days. Looking at graphs showing the past 30 days, it looks like the stock market and tech sector in particular, is ready to bounce back from its May slump. Is it time to buy the dip?

I’ve recently bought some Snowflake Inc. (SNOW), DraftKings (DKNG), GoodRX (GDRX), and Lemonade, Inc. (LMND) and made some small gains. Besides DraftKings, which has been traded since July 25, 2019, all of these companies are within one year of their IPO. I personally believe all four of these companies are recovering from the recent dip in the stock market and poised to make good gains. This is my opinion and not financial advice.

What do these companies do? DraftKings is the premier sports betting app that is only gaining in popularity as professional sports are all officially back now from the Covid-19 hiatus. Snowflake is a cloud-based data platform and offers “an ecosystem that enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data” (Yahoo Finance). Lemonade Inc. is an internet-based insurance company, I personally use them for renters insurance (don’t judge me for renting). GoodRX provides information and tools that enable customers to compare prices and save on their prescription drug purchases.

What’s your thoughts about these four stocks and the tech sector in general? Is it time to buy the dip or wait? Is the stock market starting to bounce back? Leave me a comment and let me know your thoughts.

Photo by Gilly on Unsplash

Author: vancealm

Working as a manager within two of the largest retail companies for the past 7 years has given me insight into consumer trends and essentially what people are buying on a normal basis. Why is that useful? Because it gives me a better understanding of the established and growing brands and companies that could potentially work to make YOU money. My name is Vance Alm and I am currently working on earning my MBA from the University of Nevada, Reno. I want to talk, teach, and find out more about investing in the stock market. Recently, there has been a lot of news around the stock market, hedge funds, and normal retail investors which has reignited the nation’s curiosity about investing their money. A lot of people want to be involved with the excitement of potentially making money by investing in the stock market, but they don’t know how or even where to begin. I want to explore the world of investment banking with you and talk about everything involved, from researching different companies to invest in, to the different online platforms or financial service companies you can use and everything in between. I am not a wealthy hedge fund manager and I am not an expert in the field, but I am passionate about the idea of having your money work for you. I am always learning more on the topic and I want to open the conversation on how to start investing and what companies to potentially invest in.

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