UK tech stocks hit by Nasdaq bubble fears
Friday 11 April 2014
British technology stocks slumped in early trade after New York’s Nasdaq index dropped over 3% in its worst session since late 2011 amid fears of a new tech bubble.
Chip designer ARM dived 3.6%, software group Sage fell 2.5%, mobile banking firm Monitise was off 3.2% and fashion retailer Asos 3.4%.
Recently floated tech companies also took a pounding. Online food delivery firm JustEat fell 3.8%, below its debut price seen in last week’s initial public offering. White goods electricals firm AO World tumbled 2%.
US stocks have fallen for most of the last week and took another turn for the worse last night, hitting sentiment in London. Facebook dived 5.2%, Amazon 4.4%, Google 3.6% and Twitter 2.7%. George O’Connor at broker Panmure Gordon said: “There was no particular catalyst. Maybe it’s investors doing a double-take and saying, ‘Crikey, that’s expensive.’ We’ve said since last summer that the sector looked pricey.”
Valuations had soared to more than 100 times underlying earnings — described by City spread betting firm ETX Capital as “astronomically high”.The jitters have had a mixed impact on London’s IPO market. Advertising tech firm Matomy Media pulled its float but digital voucher company Eagle Eye successfully raised £6 million this week.
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence: Despite defeat history may still point to Alex Salmond as the victor
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...