Etsy, Roku, Apple All Reported Slower Times Ahead

Despite reporting stellar results for the second quarter, many tech companies were punished by investors for their more cautious forecasts. Major lockdown-winners are now warning that growth going forward might be pressured as consumers get back to their pre-pandemic lives.

Post-pandemic tech slowdown

Roku saw a steady drop in demand as total streaming on its platform fell by 1B hours compared to the previous quarter. Etsy reported a drop in face masks sales and suggested that the e-commerce boom might start to stall. Apple warned investors that ship shortages could impact iPhone and iPads sales.

"Amazon reported a rare revenue miss and also warned growth would slow from 2020 highs. Even though Amazon reported its third $100 billion quarter in a row, it tamped down expectations for growth in the third quarter. Amazon’s CFO said the company has now lapped the growth rates from last year, and comparisons in the third quarter will look a lot tougher." by Steve Kovach for CNBC


  • Back in March 2020, investors taking large positions in beaten down technology stocks were very positively rewarded
  • Accommodative central banks, supportive governments and massive retail savings have helped sustain valuations
  • However, in recent months, the spectre of rising rates put a cap on high growth stocks' prices. In the meantime, the FED's liquidity has helped sustain valuations
  • For sure, the pandemic has given a significant boost to most technology stocks. However, valuations are still extremely elevated and the slightest breach of support from the FED could have a negative impact on most growth stocks
  • We thus expect a continuation of the current weak performance for high-growth stocks


Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.


Photo by Victor He on Unsplash.