(MENAFN- Investor Ideas) tradingplatforms.com reports that short sellers made $405 billion from the market in 2022. A significant proportion of those profits came from IT stocks. The site has presented data showing investors made $100 billion from short-selling IT stocks alone in the year.
TradingPlatforms Financial analyst Edith Reads recently shed light on the impressive returns from shorting IT stocks. She noted that the Information Technology sector had been among the worst performers on NASDAQ and the S&P 500 this year. The former, a tech-heavy index, has seen its value dip nearly 30% this year as the former's fell by roughly 20%.
Edith attributes the poor performance of tech stocks to several factors. Chief among them, she said, was the post-pandemic market correction. Here he explains the tech sector's poor performance throughout the year.
'IT companies were some of the big beneficiaries of the Covid-19 induced crisis. People were suddenly working from home and spending more time online. This shift caused a surge in demand for all sorts of tech products and services, and IT companies saw their stock prices soar. But with the containment of the virus and eventual returning of normalcy, the same stocks are dropping sharply.'
The full story and statistics can be found here: short sellers made $100b from information technology stocks in 2022 alone
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