Since February last year, the hottest most hyped stocks, many of them recent IPOs and SPACS, have been taken out the back and brutalized, either one by one or jointly. The stocks that have by now crashed 60%, 70%, 80%, or even 90% from their highs include luminaries such as Zoom, Redfin, Zillow, Compass, Virgin Galactic, Palantir, Moderna, BioNTech, Peloton, Carvana, Vroom, Chewy, the EV SPAC & IPO gaggle Lordstown Motors, Nikola, Lucid, and Rivian, plus dozens of others. Some of these superheroes are tracked by the ARK Innovation Fund, which has crashed by 55% from its high last February.
But now even the giants too are going over the cliff. Combined by market cap, the seven giants, Apple [AAPL], Amazon [AMZN], Meta [FB], Alphabet [GOOG], Microsoft [MSFT], Nvidia [NVDA], and Tesla [TSLA] peaked on January 3, and in the 13 trading days since then have plunged 13.4%. $1.6 trillion in paper wealth vanished (stock data via YCharts):
Given the repeated ugly action at the end of the trading day this week, where dip buyers were taken out on stretchers, the meme is now starting to circulate that the market has shifted from “Buy the F&%#ing Dip” (BTFD) – the rallying cry since March 2020 – to a new rallying cry, “Sell the F&%#ing Rip” (STFR).The Mayhem Below the Surface of the Stock Market Seeps to the Surface: Now it’s the Giants that Topple | Wolf Street