Other analysts concur with Bahal on the profitability metric. While many tech companies have fallen, the good ones will bounce back once they demonstrate profitability," says Neil Bahal, founder and CEO of Negen Capital PMS, a portfolio management services company. The difference is that now, the Internet is a part of everyday life. However, they caveat their commentary saying a comparison with 2000-01 may not make sense since the penetration and use of the internet is far wider now. Some tech stocks, they hold, are trading at “insane" valuations even after factoring in the recent fall. Analysts do not rule out further correction. The liquidity glut-driven euphoria in internet stocks seems to be fading. Popular Nasdaq stocks have dived-Facebook (39%), Amazon (8%), Tesla 20%), Netflix (36%) and Microsoft (15%).Īll this begs the troubling question: is this the beginning of a tech bubble burst, of the sorts we witnessed in 2000-01? Globally, the Nasdaq Composite Index has slumped over 14% year-to-date. This doesn’t seem to be just about India, much like the 2000-01 bust. On a year-to-date basis, while the Sensex has pared losses and is down nearly 1%, Paytm, Nykaa and Zomato are down 38%, 33% and 37%, respectively. Shares of FSN E-Commerce Ventures Ltd (Nykaa), One97 Communications Ltd (Paytm), CarTrade Tech Ltd (CarTrade), and PB Fintech Ltd (Policybazaar) are down anywhere between 49% and 63% from their 52-week highs as of 18 February, data from the BSE shows.
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