New Year is here and investors and traders are eagerly waiting for markets to open on Tuesday, 3rd January. 2022 was not the best year for the stock market as various stocks suffered huge losses. Numerous tech stocks and companies witnessed their market capitalization going down by historic numbers.
Interest rate hikes by central banks and high volatility in the market forced investors to sell risky stocks and park their money in safe havens. This triggered a massive decline in demand for stocks of large-cap companies.
Russian special military operation in Ukraine triggered a massive global economic crisis. High oil prices in the international market resulted in historically high inflation in all major economies. In order to control high inflation in the economies, central banks pushed up key interest rates.
Along with smaller public companies, economic crisis and high volatility also impacted the market performance of companies with large market capitalization. This article will look at the top 10 worst-performing large-cap stocks of 2022.
1 – Rivian
Rivian Automotive, Inc based in Irvine, California witnessed its stock value tumbling by nearly 82.23 per cent in 2022. Electric vehicle manufacturer trading on NASDAQ with RIVN ticker is part of the NASDAQ 100 index.
During the early months of 2022, the automobile manufacturer announced a price increase for its electric pickup trucks citing higher costs. This pushed down the prices of Rivian in stock markets. The decision to hike prices did not go well with the investors. The stock came under more pressure when renowned investor George Soros decided to sell nearly 8 million shares of Rivian.
2 – Lucid Motors
Lucid Motors based in Newark, California witnessed its market value going down by 82.05% in 2022. Due to supply chain issues with components, the company was forced to cut the production outlook from 20,000 vehicles to 12,000–14,000 vehicles. With a $12.48 billion market capitalization, it is the fifth-largest electric vehicle manufacturer in the world.
One of the major reasons for the slump in stock value is the high market value of the company which is not in line with the actual balance sheet.
3 – Snapchat
Snap Inc, the parent company of Snapchat had a terrible year in the stock markets as the stock went down by 81% on New York Stock Exchange. The stock which was trading as high as $83.11 in September 2021 is now trading at $8.95.
High inflation in the economy, the war in Ukraine and a drop in revenue impacted the company’s performance in stock markets.
4 – Unity
A software company based in San Francisco suffered huge losses on the stock market in 2022 as the company announced a merger agreement with Iron source. Listed on New York Stock Exchange in ticker U, the stock tumbled by 80.01% in the past 12 months.
5 – Sea Limited (Garena)
2022 was not a bright year for the video gaming and financial services company with stocks tumbling more than 76 per cent. Due to higher inflation rates in the economy and poor business outlook, sell-off pressure was huge for the stock on New York Stock Exchange.
6 – Shopify
stocks of the Canadian e-commerce company tumbled by more than 74 per cent in 2022 as a severe economic crisis impacted sales on online commerce platforms. Declining revenue and poor business outlook forced investors to sell the stock.
7—Roblox
Roblox Corporation, a video game developer based in Menlo Park, California became famous during the pandemic time when everyone was at home and was trying to engage themselves with games and entertainment. The stock which went as high as 134.72 dollars per share is currently traded at 28.47 dollars.
In 2022, the stock went down by nearly 72.4 per cent. Roblox which makes money out of advertisements, and in-game cash Robux, were considered a short-term growth stock by investors. As the pandemic began withdrawing, daily active users of the Roblox games went down. Along with the decline in active users, revenue also came down. This made this stock unfavorable for stock traders.
8 – Okta Inc
San Francisco-based identity management company, Okta Inc, witnessed its stocks going down by 69.5 per cent on NASDAQ. Declining earnings and revenue had negative impacts on the performance of the tech company on the stock exchange.
The stock which was trading at 291.8 dollars in February 2021 is currently traded at 68.33 dollars per share. Poor performance by other tech stocks also put pressure on Okta Inc.
9 – Nio Inc
The Chinese automobile manufacturer, Nio Inc, based in Shanghai suffered huge losses on the stock market in 2022 as aggressive COVID-19 containment policies followed by the Chinese government resulted in the disruption of operations.
In 2022, the stocks of Nio went down by 69.2%. Nio revealed in a press release that its delivery volume in the fourth quarter of 2022 wouldn’t be as high as it had previously anticipated.
10 – Match Group Inc
The stock of internet dating app company, Match Group Inc, based in Dallas, Texas tumbled by 68.63% in 2022 as earnings went down by nearly 41.92% when compared to 2021. The fall in earnings comes amidst a 7 per cent jump in revenue.
The decision of the company to continue operations in Russia also did not go down well with the investors.
