INDONESIAKININEWS.COM - The valuation for payments company Stripe and other pre-IPO tech firms was cut by T. Rowe Price Group's Global ...
According to regulatory filings, Stripe's valuation was marked down 64% to $23.04 per share as of June 30 by the $4 billion T. Rowe Price Global Technology Fund, following the prior price recorded at the end of 2021.
At the same time, the valuation for grocery delivery platform Instacart was also slashed, Bloomberg reported with the fund cutting the value of its stake in the grocery delivery service company by 40% to below $72.
Instacart investor Capital Group cut the delivery firm's valuation to $14.7 billion from Instacart's own calculation of $24 billion, PYMNTS reported in July. Capital Group put the shares at $45.84 at the end of June, the second Instacart investor to indicate that the valuation estimate was incorrect.
Fidelity Investments cut Stripe's valuation to $32.05 a share, Bloomberg reported. Other money managers, too, are reducing the value of tech firms in the mutual funds they oversee.
The reductions in valuations come as the tech-heavy Nasdaq 100 Index has been taking a hit, down 30% in the first six months of 2022. A slide in tech stocks pushed the Nasdaq to its worst session on Monday (Aug. 22) since June 28, CNBC reported on Tuesday (Aug. 23). The Nasdaq Composite index fell 2.5%.
“The global growth story is in shambles right now,” Ed Moya, a senior market analyst at Oanda, told CNBC. “That's what's really kind of weighing on risk appetite right now because you can't have the U.S. continue to be attractive while the rest of the world is crumbling.”
Because of this sentiment, pressure will continue to stay on big tech stocks, he said.
Source: pymnts
