Tech companies are ending this year with a 52 week low

Major tech companies like Apple and Tesla are ending this year in the stock market at a 52 week low. Typically a better time of year for stocks all around. This year, similar to most of the covid affected years, things are a bit less predictable. Even standard trends are not matching the actual results. Has there been any events that would have caused this or are we heading for the next stock crash? You would think it is not possible to imagine such a time. But, what recent events are causing this?

Big leaders in tech are in decline, some rapidly dropping their stock price

Some of the big leaders in the tech industry are really suffering, at least based on the stock decline. For example, Apple is on par with a 52 week low price, 131.71. Sony is struggling to stay above their annual low, currently sitting at 76.94; just 15.22 above their low. Amazon which may or may not be considered a tech company- with the addition of many products and online services I would classify them as such. Current at about 82.93 which almost exactly matches their annual low, off by about 50 cents. Microsoft also a strong asset in the tech world is in downtrend the past year about 15 dollars above their annual low. And of course Tesla which is a new 52 week low and that is the current number. A strong fluctuation in Tesla which makes it almost unpredictable.

So what does this mean for tech companies? Furthermore, is it the same for other industries? Not necessarily, retail is up from their low point. Entertainment is overall a downtrend, but with some remaining steady. So the real questions are, when can we invest again? And is this normal?

Is it because Elon went to space, or tried to?

You may say that the cause is the owners of the company. Elon Musk has been dragged through the media for buying Twitter and flying into space. I mean, I cannot disagree that these are very costly hobbies. The main question is though, why is it affecting his business. Was it an affect on his clients and losing some customer loyalty or was it he took loans on the company to acquire these other assets. And if it is his fault, why are other tech companies’ stock declining also?

Are we to blame the investment companies and mortgages for overcharging and underserving? These can affect what tech people can afford or how the stocks are traded. Are we blaming the brief internet obsession with GameStop stock? Maybe it is just the recession we have been desperately trying to prevent.

Are we heading headfirst into a recession again?

With housing prices skyrocketed and still not being controlled, people aren’t spending money on tech and other things otherwise are not needed. Tech is usually the first to stop when a recession hits. People cannot afford to buy new phones, or smart devices. Not to mention the energy crisis that is going on in other parts of the world. Consumers from all over affect growth. If you stop buying a product in one region it will affect the cost in another. But how? Will we see tech prices decline now that people aren’t jumping at the chance to buy the new iPhone?

We know that based on past evidence people stop buying new cars, new phones, computers etc. The next thing that happens in a recession is people stop buying new clothes or going to restaurants as often. It may be next that those stock prices begin to fall. In an unpredictable world, we can only control ourselves. Budgeting classes are offered for free at most banks and credits unions. They typically offer education and assistance with planning. Some even have apps you can use that connect right to your account.

Will the stocks increase again as the new year approaches as it normally would?

We can only wait and see what happens. But in the past it has been seen many times that the new year typically brings the stock prices up significantly. Maybe this year it won’t bring it to what it was, it was a bad year for investors. However, any increase is beneficial for those that have tech stocks in their portfolio of investments.