Nithin Kamath has described the sharp decline in tech companies as ‘Quite Scary’ i.e. very scary.
Zerodha CEO Nithin Kamath has expressed his opinion on the sharp fall in the share price of the listed new age technology companies across the world. Nitin Kamath has described it as ‘Quite Scary’ i.e. very scary. Nitin Kamath often keeps his opinion on the stock market and business trends on Twitter. Tweeting about the shares of technology companies, he has said that only some of these can be recovered. He tweeted on Saturday, “The sharp drop in the stock prices of listed new age tech companies around the world is quite scary. If we take a lesson from history, only a small percentage of them will come back.”
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Recently, new age companies like Zomato, Nykaa, PolicyBazaar, Caretrade and Paytm have been listed in the domestic markets. Of these, only Zomato is trading above its listing price while others are trading well below its listing price. The share price of Cartrade Tech has fallen by almost 50% from the IPO price. At the same time, Paytm, the biggest IPO ever, is trading at 40 percent less than its issue price. According to Nitin Kamath, only some of these companies will make a comeback.
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This advice given to new age companies
Nitin Kamath further advises new age companies to prioritize lower volatility long term versus max short term gains while forecasting growth. Kamath believes that companies should target low volatility in the stock price, which will be good for investors looking for long-term bets. Even the big Internet companies in America have suffered a setback. Netflix is down more than 8% in December, while Twitter is down 2%. At the same time, Elon Musk’s Tesla has registered a huge decline of 18%.
(Article: Kshitij Bhargava)
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