Market fundamentals are being thrown out the window as certain hyper growth companies in the ad tech sector are seeing stock prices slashed. If problems in ad tech surfaced (or if there was a sudden return to spray-and-pray non-programmatic advertising) the drop in market cap prices would be warranted.
But that ain’t happening.
The stock market is swayed by mass psychology and when you have a week of unrelenting bad news (daunting climate change reports; widespread fires in the world; Delta/Lambda COVID variants on the rise; the takeover of Afghanistan by the Taliban; earthquakes in Haiti) people begin to panic. They either sell off their stocks to a cash position or shift holdings to perceived “safe harbors” like the tech giants of Apple, Amazon, Microsoft, Facebook and Netflix.
I am a value investor and while watching share prices plummet makes me queasy, I do my own version of heading to safe harbors during times like these and ensure that I have my largest positions in companies that I am most confident in. Currently I have “shortened the bench” to three positions:
Magnite (MGNI): $3.5B
Digital Turbine (APPS): $4.87B
Jounce Therapeutics (JCNE): $270M
“Here’s my half a dollar if you dare. Double twist when you hit the air.” –Row Jimmy, Grateful Dead