Many tech companies are experiencing losses in 2022. No company is immune, with losses felt by companies big and small, including tech giants such as Apple, Amazon, and Google. These are some of the biggest losers in the technology field from 2022, based on figures from the popular S&P 500 stock market index.
PayPal: Reduced Online Spending Causes Drastic Losses
With a 60% drop, PayPal is the biggest tech loser on the S&P index. Stock prices for the financial technology business have plummeted, largely because of reduced income due to a decrease in consumer spending. High inflation means consumers are spending less on non-essential items, reducing the potential for PayPal’s gains through transaction fees.
Consumers are also impacted by factors such as stock shortages, delivery problems, and reduced labor, alongside a shift in spending habits. Additionally, people returning to traditional shopping methods in physical stores as opposed to online buying makes PayPal less competitive against old-style payment companies.
Epam Systems: Ukraine Invasion Leads to Losses
With more than half of its staff members based across Russia, Ukraine, and Belarus, it’s little surprise that regional tensions have resulted in shares of Epam Systems falling by more than 50%. After seeing huge gains over recent years, the steep 53.1% drop will surely come as a huge blow to the software engineering company.
Fears over practical operational ability were largely responsible for the plummeting prices, along with stopping services in Russia. The company hopes that financial support for Ukrainian employees alongside seeking growth in other nations will help to reverse its fortunes.