At the time of this writing, there is a sell -off session in the technology sector especially after the release of their first quarter earnings report.
Most recently, a filing on the United States (US) securities (SEC) reported that several hedge fund firms had acted to sell all of their holding shares in streaming company, Netflix.
Among the firms that acted to sell Netflix shares were Tiger Global Management, Winslow Capital Management and Scopus Asset Management.
It is understood that the sale of the shares was done before the company published a report on the reduction in the number of Netlfix users in a decade in March.
So far this year alone Netflix shares have fallen by 69%.
In addition, Meta Platform Inc Facebook also suffered the same fate when the Light Street Hedge fund sold a total of 149,025 shares of the company held including a total of 7,960 Netflix shares.
The firm also halved its stake in Google’s Alphabet Inc. and sold 10% of Amazon.com shares as of the first quarter ended March.
Meanwhile, Hitchwood Capital Management LP is said to have sold a total of 390,000 Meta shares held while Dan Sundheim’s D1 Capital reduced its Amazon holdings by 22% to 198,443 and Melvin Capital sold all 850,000 Meta shares.
Generally, fund managers are seen re -evaluating tech giants that once entered the rally following the Coronavirus outbreak in 2020 to generate the S&P 500 benchmark peak.
However, since sanctions were lifted in most countries around the world, the S&P 500 index has declined nearly 16% so far this year alone with the Russell 1000 Growth index, which is more focused on tech companies, plunging 25%.
Although many firms acted to sell their holdings, Farallon Capital Management was seen adding a total of 698,195 shares of Meta and Coatue Management bought another 18.2% of Meta shares as well as 54.5% of Netflix shares.
