The market's freshest technology stocks tumbled on Monday, performing worse than the major indexes and trailing the broader tech sector.
Zoom, the video-chat company that debuted with a 72% pop in April, closed down 11% at $89.41. The plunge shaved $2.8 billion from its market cap, which now sits at $22.9 billion. Beyond Meat, the top-performing IPO of 2019, fell 8.5% Monday, dropping its market cap by $700 million to $8.2 billion. At $140.99, the stock is still up more than fivefold from its IPO price of $25.
Emerging tech companies have been some of this year's best performers, but they now trade at revenue and earnings multiples that are significantly higher than their peers. That leaves them vulnerable to bigger drops on days when investors express concerns about the economy. The tech-heavy Nasdaq Composite Index fell just 0.3% on Monday, and the slipped 0.2%.
Other recent tech IPOs also had rough days on Monday. PagerDuty, which provides tools for developers, dropped 7.7%, and security software vendor CrowdStrike lost 5.9%. Another enterprise company, Fastly, fell 3.9%, while social media platform Pinterest slid 3.9%. Ride-sharing rivals Lyft and Uber fell 0.8% and 2.1%, respectively.
Even the newest tech stock on the New York Stock Exchange, Slack, fell 3.9% Monday to $35.76. Slack began trading on Thursday in a direct listing. The share price is still well above the $26 reference price set by the NYSE ahead of its debut.
Fiverr, a platform that connects employers to freelance workers, was a rare bright spot among the tech IPO class, rising 5.3% Monday.