It may not last beyond earnings season, but big fear is dominating Big Tech.

Every quarter during earnings season there are always companies that fail to meet the expectations of analysts or their own executives. It has gotten to the point where failing to meet an enthusiastic estimate is seen as more important than a company’s continued success at increasing sales or profit margins.

Then again, as we saw last week with Facebook FB, -2.19% a maturing business model and concurrent desire for a responsible business approach can lead an expected decline in the sales growth rate and simultaneous rapid increase in expenses. This is a bad combination for a stock even if a company continues to boost sales rapidly and turn tidy profits.

On Monday, the tech-heavy Nasdaq 100 Index NDX, -1.42% fell 1.4%, while the S&P 500 Information Technology Sector Index GSPT, -1.78% dropped 1.8%. (The broader S&P 500 Index SPX, -0.58% was down 0.6%.)

The worst performer among the Nasdaq 100 on Monday was Take-Two Interactive Software TTWO, -7.73% which slid 7.7%. The company is expected to announce its quarterly results after the market close on Aug. 2.

Here’s a look at big game developers and esports.

The second-worst performer among the Nasdaq 100 was Netflix NFLX, -5.70% whose shares were down 5.7%. Investors remain fixated on one number each quarter for Netlflix — subscriber growth — which may foretell a lot more trouble for the stock.

Take-Two competitor Electronic Arts EA, -5.68% was also down 5.7% on Monday. The company disappointed investors on July 26.

Shares of Facebook slipped 2.2%, for a one-week decline of 18.9%, following a disappointing outlook from the company’s executives on July 25.

Tesla TSLA, -2.36% decreased 2.2% on Monday, bringing a loss to 4.3% in one week and 6.8% for July. Investors have been going through a periodic questioning of the stock’s high valuation as CEO Elon Musk fails to meet his lofty electric-car-production goals. The California-based car maker is scheduled to announce second-quarter results Aug. 1 after the stock market closes. Here’s a preview of what to expect when Musk once again performs during an earnings conference call.

Don’t miss: His winning bet during the financial crisis garnered him fame — now, he’s betting against Tesla

Here are three lists of the worst-performing stocks among the Nasdaq 100, for your convenience and lamentation:

20 worst Nasdaq 100 stocks on July 30 Company Ticker Price change - July 30 Price change - July 23 through July 30 Price change - June 29 through July 30 Price change - 2018 through July 30 Price change - 2017 Take-Two Interactive Software Inc. TTWO, -7.73% -7.7% -10.8% -4.4% 3.0% 122.7% Netflix Inc. NFLX, -5.70% -5.7% -7.6% -14.4% 74.5% 55.1% Electronic Arts Inc. EA, -5.68% -5.7% -13.9% -10.5% 20.1% 33.4% Workday Inc. Class A WDAY, -5.09% -5.1% -7.5% 2.3% 21.8% 53.9% Adobe Systems Inc. ADBE, -4.90% -4.9% -6.6% -0.6% 38.3% 70.2% Intuit Inc. INTU, -4.54% -4.5% -6.8% -0.8% 28.5% 37.7% Illumina Inc. ILMN, -3.95% -4.0% -7.0% 3.6% 32.4% 70.6% PayPal Holdings Inc PYPL, -3.59% -3.6% -7.7% -1.1% 11.9% 86.5% Synopsys Inc. SNPS, -3.51% -3.5% -2.7% 4.4% 4.8% 44.8% Activision Blizzard Inc. ATVI, -3.46% -3.5% -8.8% -4.7% 14.9% 75.4% MercadoLibre Inc. MELI, -3.19% -3.2% -5.5% 14.8% 9.1% 101.5% Autodesk Inc. ADSK, -3.17% -3.2% -5.6% -3.1% 21.1% 41.6% NvidiaCorp. NVDA, -3.13% -3.1% -2.1% 3.1% 26.2% 81.3% Intuitive Surgical Inc. ISRG, -3.12% -3.1% -3.2% 5.1% 37.8% 72.6% Cadence Design Systems Inc. CDNS, -2.94% -2.9% -2.7% 1.4% 5.0% 65.8% JD.com Inc. ADR Class A JD, -2.90% -2.9% -1.4% -9.7% -15.1% 62.8% Booking Holdings Inc. BKNG, -2.64% -2.6% 1.7% 0.1% 16.8% 18.5% Biogen Inc. BIIB, -2.63% -2.6% -7.4% 14.2% 4.0% 12.3% Ulta Beauty Inc ULTA, -2.58% -2.6% -4.5% 4.3% 8.9% -12.3% Paychex Inc. PAYX, -2.47% -2.5% -2.4% 1.2% 1.6% 11.8% Source: FactSet 20 worst Nasdaq 100 stocks in one week

Facebook brought up the rear for one-week performance among the Nasdaq 100:

Company Ticker Price change - July 30 Price change - July 23 through July 30 Price change - June 29 through July 30 Price change - 2018 through July 30 Price change - 2017 Facebook Inc. Class A FB, -2.19% -2.2% -18.9% -12.0% -3.1% 53.4% Electronic Arts Inc. EA, -5.68% -5.7% -13.9% -10.5% 20.1% 33.4% Take-Two Interactive Software Inc. TTWO, -7.73% -7.7% -10.8% -4.4% 3.0% 122.7% Intel Corp. INTC, +0.02% 0.0% -8.8% -4.1% 3.3% 27.3% Activision Blizzard Inc. ATVI, -3.46% -3.5% -8.8% -4.7% 14.9% 75.4% Western Digital Corp. WDC, -1.55% -1.5% -8.3% -9.5% -11.9% 17.0% PayPal Holdings Inc PYPL, -3.59% -3.6% -7.7% -1.1% 11.9% 86.5% Align Technology Inc. ALGN, -1.47% -1.5% -7.7% 1.9% 56.9% 131.1% Netflix Inc. NFLX, -5.70% -5.7% -7.6% -14.4% 74.5% 55.1% Workday Inc. Class A WDAY, -5.09% -5.1% -7.5% 2.3% 21.8% 53.9% Biogen Inc. BIIB, -2.63% -2.6% -7.4% 14.2% 4.0% 12.3% Illumina Inc. ILMN, -3.95% -4.0% -7.0% 3.6% 32.4% 70.6% Intuit Inc. INTU, -4.54% -4.5% -6.8% -0.8% 28.5% 37.7% Adobe Systems Inc. ADBE, -4.90% -4.9% -6.6% -0.6% 38.3% 70.2% Hasbro Inc. HAS, -2.08% -2.1% -6.5% 7.5% 9.1% 16.8% Autodesk Inc. ADS, -0.99% -3.2% -5.6% -3.1% 21.1% 41.6% MercadoLibre Inc. MELI, -3.19% -3.2% -5.5% 14.8% 9.1% 101.5% Marriott International Inc. Class A MAR, -2.05% -2.1% -4.6% -0.5% -7.2% 64.2% Ulta Beauty Inc ULTA, -2.58% -2.6% -4.5% 4.3% 8.9% -12.3% Idexx Laboratories Inc. IDXX, -1.45% -1.5% -4.3% 9.1% 52.0% 33.4% Source: FactSet Worst Nasdaq 100 stocks in July

Tesla has suffered the worst performance this month of any Nasdaq 100 stock:

Company Ticker Price change - July 30 Price change - July 23 through July 30 Price change - June 29 through Juoy 30 Price change - 2018 through July 30 Price change - 2017 Tesla Inc TSLA, -2.36% -2.4% -4.3% -15.4% -6.8% 45.7% Netflix Inc. NFLX, -5.70% -5.7% -7.6% -14.4% 74.5% 55.1% Ctrip.com International Ltd ADR CTRP, -0.64% -0.6% -1.4% -12.1% -5.1% 10.3% Facebook Inc. Class A FB, -2.19% -2.2% -18.9% -12.0% -3.1% 53.4% Electronic Arts Inc. EA, -5.68% -5.7% -13.9% -10.5% 20.1% 33.4% JD.com Inc. ADR Class A JD, -2.90% -2.9% -1.4% -9.7% -15.1% 62.8% Western Digital Corp. WDC, -1.55% -1.5% -8.3% -9.5% -11.9% 17.0% Twenty-First Century Fox Inc. Class A FOXA, +0.02% -0.1% -1.8% -9.2% 30.6% 23.1% Broadcom Inc. AVGO, +1.87% 1.9% 3.9% -7.2% -12.3% 45.3% Ebay Inc. EBAY, -0.41% -0.4% -0.4% -7.1% -10.8% 27.1% Activision Blizzard Inc. ATVI, -3.46% -3.5% -8.8% -4.7% 14.9% 75.4% Take-Two Interactive Software Inc. TTWO, -7.73% -7.7% -10.8% -4.4% 3.0% 122.7% Seagate Technology PLC STX, -1.26% -1.3% -4.2% -4.4% 29.1% 9.6% Intel Corp. INTC, +0.02% 0.0% -8.8% -4.1% 3.3% 27.3% Kraft Heinz Co. KHC, +0.03% 0.0% 0.0% -4.0% -22.5% -10.9% Wynn Resorts, Limited WYNN, -0.96% -1.0% -1.2% -3.3% -4.0% 94.9% Autodesk Inc. ADSK, -3.17% -3.2% -5.6% -3.1% 21.1% 41.6% J.B. Hunt Transport Services Inc. JBHT, -0.88% -0.9% -3.4% -3.1% 2.5% 18.5% Skyworks Solutions Inc. SWKS, -0.81% -0.8% -2.1% -2.3% -0.5% 27.2% Cisco Systems Inc. CSCO, -0.94% -0.9% 0.3% -2.0% 10.1% 26.7% Source: FactSet

More on investing in Big Tech: Fear the FAANG stocks? Here’s a better S&P 500 index fund for you

Create an email alert for Philip van Doorn’s Deep Dive columns here.

Source link