Shares in Tyro Payments Ltd (ASX: TYR) are trading 5.02% down on Friday and now fetch for $1.60 apiece, despite no market-sensitive information out of the company's camp.
Tyro shares have been gliding downwards these past 3 months, having tumbled off a high of $2.92 both in January and then before in December.
This year to date, shares are down more than 44%, meaning they need to almost double to return to that previous level.
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Why's the Tyro share price plunging today?
Whilst there's been no market-sensitive information today, the ASX tech basket has taken a hit on Friday, amid a wider selloff in ASX shares.
The S&P/ASX All Technology Index (ASX: XTX) is also down 3.04% today, whereas the benchmark S&P/ASX 200 Index (ASX: XJO) is just 0.81% in the red.
Hence the tech sector is trailing the broader market today, undoubtedly adding into the selling pressure on Tyro shares.
Not even a positive update announcing a 44% increase in transaction value to $2.5 billion from last month was enough to get investors on board.
But the macro-economic climate has been fought with a risk-off attitude lately, and this has been reflected in the flow of funds into and out of equities in 2022.
Much of this is spurred on by the inflation narrative and the increasing yields on long-date government bonds that hurt stock valuations. There tends to be an inverse relationship between tech stocks and the yields on these bonds, as shown below.
Now with the geopolitical conflict in Europe, ASX shares continue to face challenges today and high-beta tech shares will feel the brunt of that pressure.
Alas, the stage is set for Tyro to continue its downward spiral today, seeing as the negative momentum has been in place for a number of months, and the macro-economic climate has seen high-growth tech shares take a beating in 2022.
Tyro was also one of the most shorted shares last week with a total of 8.4% of its float open to short interest, placing it in the top 10.
Suffice to say, the sentiment isn't the best on the Tyro investment debate as of right now – much to the delight of those contrarian investors out there.
Tyro share price snapshot
In the last 12 months, the Tyro share price has collapsed over 50% and is down 44% this year to date.
During the past month of trading, shares have collapsed another 25%, meaning Tyro is trailing the broad indexes this year across all time frames.
