Tech Stocks Slaughtered

Market Meltdown: Tech Stock Slaughter Continues

As some of the most high-flying technology stocks continue their dramatic declines, one Wall Street analyst calls it a "reality check" for investors

Sam Gustin @samgustin      

               

It’s a bloodbath.

Technology stocks continued their stomach-churning free fall Wednesday, wiping out billions of dollars in shareholder value as investors shunned one-time market darlings.

The selloff affected old-school Internet stalwarts like AOL as well as newly public firms such as Twitter, reflecting investors’ growing disillusionment with so-called growth companies particularly in the Internet sector.

After a remarkable five-year run in which the tech-heavy Nasdaq index rebounded from the depths of the Great Recession to soar 135%, fueling high-flying IPOs from the likes of Facebook, Groupon and Zynga, many tech investors have hit pause.

The biggest victims of Wednesday’s carnage were network security firm FireEye (down 24%), AOL (down 21%), Groupon (down 21%), and Candy Crush maker King Digital (down 13%).

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Just As Expected