How bad can it get? Some perspective on the stock market sell-off

5/12/22 8:00PM

Usually when the share price of a well-known tech company falls more than 10% it's a perfect story for us to do a chart on. But in the last few weeks we've been overwhelmed, as almost every single day multiple major household names have been taking double-digit losses. We highlighted some of the worst affected last week — many of which have continued their slide this week.

‍How bad can it get?

‍We've combed through 50 years of daily data on the NASDAQ Composite Index, a tech-heavy index comprised of more than 2,500 companies, to get some perspective on how bad this crash has been... and how bad it could get.

So far the NASDAQ is down 29% from its previous peak. That puts it in bear market territory, but it isn't even close to the 75-80% drop that was seen during the bursting of the dotcom bubble in 2000 or the depths of the Global Financial Crisis of 2008/09. Things could get a lot worse before they get better as inflation, slowing growth and geopolitical uncertainty take their toll or this could turn out to be one of the many 20-30% drops that markets have lived through over the last 50 years, without turning into a complete capitulation.

One result of the tech slide has been that Apple has lost its crown as the world's most valuable company (coincidence that it just retired the iconic iPod...?). That honor now falls to Saudi Aramco — which like many energy companies has benefited from rising oil prices.

Hyunsoo Rim

appy birthday

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Apple is turning 50 today and it doesn’t look a thing like its younger self

From Macs to iPods, iPhones, and now services, here’s how Apple’s business has looked every 10 years.

The entrance of Allbirds seen from Hayes St. in San Francisco, Calif.

Allbirds, the once buzzy multibillion-dollar sneaker startup, is selling up for $39 million

That’s less than 1% of its peak market cap about four years ago.

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JetBlue is raising its bag fees as fuel costs squeeze airlines

JetBlue will reportedly hike its bag fees, as the cost of jet fuel continues to climb amid the war in Iran. It’s the latest example of carriers finding ways to push rising costs onto travelers.

Last week, United Airlines CEO Scott Kirby said that if fuel prices remain elevated, fares would need to rise another 20% for his airline to break even this year.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.