A dozen stocks in the S&P 500 just had their worst quarter as tech stocks shed nearly $2 trillion in value.

A sell-off in stocks to kick off 2022 led to the worst quarter ever for a dozen S&P 500 stocks, as investors punished highly valued, pandemic-favorite tech companies, stripping roughly $2 trillion from market capitalization. .

Tech companies bore the brunt of a first-quarter selloff felt across Wall Street, as the Nasdaq Composite Index COMP
it lost $1.99 trillion in market capitalization through Wednesday’s close, its worst quarterly performance since the fourth quarter of 2018, according to Dow Jones Market Data Group. The broader-based indices also lost more than $1 trillion in market cap, but held up better than the tech-heavy Nasdaq, with the S&P 500 SPX Index.
decreasing by $1.46 billion.

Dow Jones Market Data Group found 12 stocks that suffered their worst quarterly percentage decline, and about half could be considered technology companies: Etsy, PayPal, the parent company of Facebook, Meta Platforms, Keysight Technologies, Match Group and Charter Communications. However, others that may not be considered “tech companies” were hurt by some of the same dynamics that hurt those stocks: Xylem, which sells control technology and other supplies to the water industry, saw its margins squeezed by the increased component costs for those systems.

Dive deep: These 10 stocks are down at least 20% in the first quarter, but are expected to soar as much as 66% from here.

The 12 stocks combined to lose almost half a trillion dollars in market capitalization alone, a total of $494.19 billion. Most of it came from Facebook, which fell more than $300 billion in valuation as investors shaved about a third of its share price.

stocks

Q1 % decrease

Lost market capitalization

Etsy Inc. ETSY

43.2%

$11.97 billion

PayPal Holdings Inc. PYPL

37.9%

$85.08 billion

Ceridian HLM Holding Inc. CDAY

34.6%

$5.36 billion

Meta Platforms Inc. FB

33.2%

$317.2 billion

Xylem Inc. XYL

27.5%

$6.29 billion

Keysight Technologies Inc. KEYS

23.5%

$9.05 billion

Zoetis Inc. ZTS

22.7%

$26.48 billion

Match Group Inc. MTCH

17.8%

$6.43 billion

Charter Communications Inc. CHTR

16.3%

$8.16 billion

Carrier Global Corp. CARR

15.4%

$7.88 billion

American Water Works Co. Inc. AWK

12.4%

$4.2 billion

Otis Worldwide Corp. OTIS

11.6%

$4.28 billion

The decline in Facebook’s market capitalization is greater than the actual market capitalization of The Walt Disney Co. DIS
and legacy tech stalwarts like Cisco Systems Inc. CSCO
and Oracle Corp. ORCL,
and almost exactly three times the combined valuations of social media competitors Snap Inc. SNAP,
Twitter Inc. TWTR
and PIN from Pinterest Inc.,
which together were worth about $105.6 billion as of Thursday’s close.

Meta shares were affected by a change in the AAPL of Apple Inc.
mobile operating system that hurt Facebook advertisers’ ability to track their campaigns. executives blamed the changes for a loss of profit from the holiday season and weak first-quarter sales guidance, leading to big drops in stocks. Other social media companies weren’t immune, with Twitter down almost 10% in the quarter, Snap down more than 20% and Pinterest’s drop topping 30%.

See also: Meta CFO yells ‘wolf’ again with bleak Facebook outlook, but he may be right this time

Other tech companies saw big gains during the pandemic but saw the trajectory reverse sharply as growth petered out. PayPal was a huge success during the early part of the pandemic, but the company surprised investors when it announced a change in its strategy earlier this year. The fintech pioneer was showing strong growth in active accounts, but executives said in February that they planned to start focusing on driving activity among the most lucrative users, rather than expanding the user base in absolute terms.

For more: PayPal shares plunge to worst day on record after ‘ugly’ earnings report

Investors were surprised, as the new strategy meant that PayPal would abandon a long-term goal for user growth that it had held just a few months earlier. Additionally, the company noted negative impacts on spending among low-income consumers. Commentary on PayPal’s spending generally struck one analyst as more pessimistic than what card companies Visa Inc. V said.
and Mastercard Inc. MA
had recently offered.

Etsy came into existence along with sale of masks and other equipment related to the pandemicr combining with a general e-commerce boom, but analysts believe the company may have hit a growth plateau. “While the company has shown notable success in reviving dormant buyers, we believe new buyer growth may have peaked,” analysts at Truist wrote recently, while maintaining a buy rating and price target of $220.

Read: Etsy sellers plan a boycott, calling the company’s new fee hike ‘pandemic speculation’

online dating also got a boost during the pandemicbut Match’s forecast earlier this year was light amid concerns about the Omicron variant. However, analysts still see chances for online dating to rebound in a big way this year: Wedbush analysts wrote earlier this year that “Match is still seen as a ‘reopening’ and if COVID cases decline As we head into the warmer months, we should see an improvement in growth as we head into 2H, and management is more optimistic about how 2H will play out.”

Online dating amid coronavirus: Longer conversations and a ‘pivot’ to video dates

After benefiting from the work-from-home boom at the start of the COVID-19 crisis, Charter is experiencing a slowdown in broadband subscriber growth. The company is now looking for its next stage of growth, and it may have found it in the wireless business. Charter posted a record quarter of wireless additions with its latest earnings report, but it remains to be seen how the company will fare in the competitive market for phone plans.

Other tech stocks also had historically bad quarters, but they didn’t set a record. Netflix Inc. NFLX,
for example, fell 37.8%, its worst quarterly performance since the second quarter of 2012, while Adobe Inc.’s ADBE.
The 19.7% drop was the worst since the third quarter of 2011 and Intuit Inc.’s INTU.
The 25.2% drop was the worst since the dotcom era, the first quarter of 2001, according to the Dow Jones Market Data Group.

MarketWatch Staff Writer Emily Bary contributed to this article.

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