5 Biggest Tech Stock Drops in 2022

1. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 44

Year to  Date Share Price Drop: 83%

Snap Inc. (NYSE:SNAP) is known for its camera application that allows users to share their daily lives with followers and friends. The company is headquartered in Santa Monica, California.

Snap Inc. (NYSE:SNAP)’s shares dropped by another massive 30% by the close of October’s third week as the firm warned about weakening revenue from advertisements. This contributes to an eye watering 83% annual drop in the share price. While it lowered Snap Inc. (NYSE:SNAP)’s share price target to $10 from $14 in October 2022, UBS remained optimistic that the firm can recover its daily average users. Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 44 had invested in the firm.

Out of these, Snap Inc. (NYSE:SNAP)’s largest investor is John Overdeck and David Siegel’s Two Sigma Advisors which owns 14 million shares that are worth $184 million.

Silver Ring Value Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“I bought SNAP put options in the fall of 2021, when the stock was above $70 and its market cap around $100B. With revenues of ~ $4B in 2021, this put the company at a whopping 25x sales. I
refer to a multiple of sales only because the company wasn’t yet making a profit, despite its astronomical valuation.

I strongly believed that market participants were over-extrapolating a few years’ worth of high sales growth too far into the distant future. This growth was likely temporarily boosted as advertisers
experimented during COVID, attempting to reach customers in new ways. In other words, it was benefiting from unsustainable forces.

Having followed the media space for two decades, one thing that I have observed is that change happens slowly. Advertisers rarely abandon an old medium in a wholesale fashion or embrace a new one in such a way. Instead, they shift their budgets incrementally, experimenting and measuring Return on Investment (ROI) along the way…” (Click here to see the full text)

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