The risks of investing in tech stocks

Investments that looked splendid when cash was cheap have lost much of their allure. PHOTO: AFP
Gift this subscriber-only story to your friends and family

The stock market adores high-growth tech companies – until it suddenly does not. And when the mood changes, as it has in 2022, the brutality of the stock market goes on spectacular display.

Consider what has happened to Meta, the company formerly known as Facebook, the archetypal social network. Its earnings have shrivelled, and it has begun laying off workers. Worth US$1 trillion (S$1.4 trillion) only a year ago, the company has lost nearly three-quarters of its stock market value.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Follow ST on LinkedIn and stay updated on the latest career news, insights and more.