The year-end stock market plunge is hitting one class of companies particularly hard: 2018 tech initial public offerings (IPOs).
Last week's sell-off was unusually steep, with Zuora, SVMK (SurveyMonkey) and Elastic all tumbling more than 10 percent. Domo plummeted 25 percent, Zscaler fell 18 percent and Anaplan declined 12 percent.
Many public market investors who bet on emerging tech companies are underwater in 2018. SVMK is now below its IPO price from September, joining Spotify, Sonos and Domo, which are all trading lower than their debut prices. Dropbox fell 14 percent this week and its 26 percent decline in the past three months has pushed the stock below its initial price in March.
The downdraft for recent IPOs is part of a broader decline in technology stocks that started in mid-September. Younger companies have been hit the hardest as investors question how well they'll be able to hold up if the economy slows and some businesses are forced to deal with a downturn for the first time in their history.