Every company in tech is getting hammered in the stock market. I keep hearing that companies with high free cash flow are being favoured and the market is punishing companies that are poorly optimised for FCF.
Why has this sudden shift happened? Hasn’t it been obvious that interest rates will rise eventually?
Looking for some insight and plausible explanations. Predicting and understanding market behaviour can be like reading tea leaves but I still think there’s some value/signal in discussions.
2016, QQQ = 100
2020 QQQ = 400
Why?
It actually very easy to understand the market behavior, just look at the charts.
And, you should decouple the company from the stock. A good company can have bad stock , what count for the stock market is what is priced in, not the actual performance.