By The valuation for payments company Stripe and other tech firms was cut by T. Rowe Price Group as investors’ romance with technology stocks continues to cool.
Share prices in Stripe were reduced to $23.04 a share as of June 30 by the $4 billion T. Rowe Price Global Technology Fund, a 64% decline over the end of 2021, according to a regulatory filing Monday (Aug. 22) and data compiled by Bloomberg.
The valuation for grocery delivery platform Instacart was also slashed, Bloomberg reported. The T. Rowe tech fund cut Instacart by 40% to below $72, according to the regulatory filing and data compiled by Bloomberg.
T. Rowe Price couldn’t immediately be reached to comment by Bloomberg or by PYMNTS.
See also: Instacart Investor Slashes Grocery Deliverer’s Valuation to $14.7B
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.
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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.
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