This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Between March 2000 and October 2007, the S&P 500 Index (SNPINDEX: ^GSPC) increased by a rather paltry 1.43%. To compound that painful six-and-a-half-year period, the S&P would fall more than 55% from the 2007 high during the Great Recession. 

Combined, the world's most notable stock index -- a collection of 500 of the most-valuable and important public companies on earth -- would lose more than half its value in the "lost decade" between March 2000 and March 2009. The tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) would lose nearly three-fourths of its value over the same period.

The S&P would take another four years to return to the highs it reached in 2000, while the Nasdaq didn't fully recover until March of 2015. That's 12 and 15 years respectively for these two indices to fully recover. 

Fast-forward to today, and investors are fearful that we could be near the start of another lost decade, particularly for tech investors. Is that the case? With rising interest rates and economic pressures changing the game from the cheap-capital, grow-grow-grow days of the past decade, the recent pain could continue for many beaten-down tech stocks for some time to come.

But there's more to the story. If you want to avoid the mistakes that likely cost likely millions of people billions in lost wealth, keep reading. 

How we got here

The broad stock market downturn we've seen this year only tells part of the story. The S&P 500 and Dow Jones Industrials (DJINDICES: ^DJI) peaked in January of 2022 and are down 18% and 9% respectively during a painfully long downturn for stocks this year. The Nasdaq Composite peaked in November of 2021 and is down 31% at recent highs. 

So far, these drops are a far cry from the near-75% wipeout from the dot com crash. This time around, the most-valuable tech stocks have, relatively speaking, held up much better. Microsoft, for example, has seen its stock fall about 30% from the recent highs, while it lost more than 60% of its value during the dot com bust, and it was still off more than 70% from the high in March 2009. Similarly, Apple shares fell more than 60% in the dot com crash, though the success of the iPod and iPhone during the years of the Great Recession changed its prospects -- and stock price. 

Today, these multi-trillion-dollar tech stocks are massive, stable companies, and that's helping buoy the Nasdaq in ways that index wasn't supported following the 2000 peak. But when we peel back the layers, we see the pain: More than 1,600 of the nearly 4,200 Nasdaq-traded stocks are 50% or more below their 52-week highs. More than 1,100 Nasdaq stocks have lost more than twice as much value as the Nasdaq Index. 

As a result, plenty of investors who've focused on smaller, high-growth companies in recent years saw their portfolios lose massive amounts of value over the past 18 months or so.  

What it means going forward -- and the biggest mistake to avoid

Let's be honest with ourselves: Many of those stocks won't fully recover to their prior highs. A lot of unprofitable businesses were able to raise money in an environment where interest rates were low, bond yields were paltry, and plenty of investors were willing to pay premiums and take on more risk to capture returns. Some of those companies won't be able to make the transition from money-burning to profitable, at least without taking actions that further impair per-share returns. A lot will get acquired for less than investors paid for them, with no better options on the table. 

But for investors, anchoring on what you paid for a stock, or what it was worth at the peak, won't help you invest better, make up for losses, or build future wealth. But there is some wisdom we can take from looking at the market's history. Let's look past those prior peaks, and consider how stocks did in the periods in between:

^IXIC data by YCharts

Don't make the mistake of getting caught in up past stock price peaks, and walk away from stocks during the sell-off. Investors make their best money continuing to buy during downturns, when everyone else is afraid it will get worse. 

Just keep buying

This is the hard, cold, reality of investing in stocks: In the short term, you can lose money (at least on paper); and sometimes, you can lose money for longer than you expect. This is particularly true during the moments of peak exuberance when markets are near a peak, and recent market gains bring stock buying back into the popular consciousness -- at least for a time. Then interest wanes as stock prices falter, and the rush for the exits results in big losses, burning a lot of people and turning them off from stocks entirely. 

Instead of avoiding that risk, investors can make that an advantage. It's during these downturns that investors make their money: Find the companies that can still deliver on their long-term goals, buy, and hold.

It sounds simple, and to some extent it is. But it's not easy. Living through and investing during painful downturns is hard. But as those sharp gains after every prior downturn should remind us, it's very profitable. And that makes it another hard thing that's worth doing well. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Worried we're in another dot-com crash? Here's the biggest mistake to avoid appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jason Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

While it's a relatively quiet day for the Nasdaq Composite (NASDAQINDEX: ^IXIC) itself today, there's a lot of volatility within its component stocks. As of 1:23 p.m. ET on Aug. 11, the stock index is up a modest 0.25%. That's good enough to keep it up more than 20% from the recent lows in June, continuing its recent bull run. 

Shares of battery maker Enovix (NASDAQ: ENVX) are up 32%, and shares of both 23andMe (NASDAQ: ME) and Trupanion (NASDAQ: TRUP) are up around 7%. On the downside, shares of smart-speaker maker Sonos (NASDAQ: SONO) and card issuing and payment processing company Marqeta (NASDAQ: MQ) are both down around 25% at this writing. 

Battery start-up Enovix sells some batteries; market approves

Since its founding, Enovix has been almost entirely focused on research and development. But in 2021, it made a commitment to begin the transition from developing a product to making it -- and selling it -- by the second quarter of 2022. Well, it met that goal in the quarter, shipping battery cells to 10 original equipment manufacturers (OEMs), which will use the cells in their products, and generating a modest amount of revenue from those cells. Needless to say, investors were incredibly pleased by this, as it positions the company to begin generating cash flows and delivering on its potential. 

Investors should remain somewhat cautious, however. It's still very early in its transition to commercial sales, and the majority of cells it's shipping at this stage are likely to be used by OEMS for testing, not with finished products. To be clear, this is still a big step forward, but Enovix's products still have to meet OEMs' standards, and it must compete in a big, but highly competitive, market. 

23andMe, Trupanion represent general bullishness driving stocks higher

Genetics research company 23andMe and pet insurer Trupanion are both up strongly today, but not on any very recent news. 23andMe's shares have been climbing for most of the past week, up almost 30% since the day before it reported second-quarter results, while shares of Trupanion are up 13% since its Aug. 3 earnings release. Neither company has any particularly material news out there today. However, if there is one common thread both companies share, it's short interest, or how much of its stock float is sold short: 7% of 23andMe's shares are sold short, while 15% of Trupanion's are shorted. It's possible the recent gains for both is short-sellers reducing their positions. 

That's great for a short-term move higher, but both companies have a lot to prove about their ability to grow and generate positive cash flows to generate long-term wealth to shareholders. 

Leadership changes rocking the boat for Sonos and Marqeta

While investors seem more optimistic in the three prior stocks, Sonos and Marqeta left shareholders uneasy -- nay, downright worried -- this week. Sonos reported a 2% revenue decline, weakening margins, and a net loss after being profitable in last year's second quarter. Adding to that uncertainty, CEO Patrick Spence told investors that CFO Brittany Bagley was leaving the company to "pursue another professional opportunity," while the company's Chief Legal Officer was stepping in as interim CFO. 

Marqeta investors were even more shocked by big leadership changes. Company founder Jason Gardner announced that he was stepping down as CEO once a replacement is named. At the same time, COO Vidya Peters is also leaving, with its chief product officer taking over on an interim basis. Gardner did say that when he vacates the CEO chair, he would remain in a leadership role as executive chairman. 

Needless to say, these both demonstrate that investors are looking for certainty in the ongoing environment, and weak results combined with management changes -- especially when there's not a replacement already named -- is enough to send investors heading for the exits. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jason Hall has positions in 23andMe Holding Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and recommends Sonos Inc and Trupanion. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The Nasdaq Composite Index (NASDAQ: .IXIC) is cranking on August 10, 2022, up 2.4% at 12:53 p.m. Today's big gains come as earnings season continues and following the release of the latest inflation data from the U.S. Department of Labor this morning. According to the data, the Consumer Price Index, or CPI, rose 8.5% in July. For context, that's still near the highest levels of the past four decades, but it's trending very much in the right direction after June's 9.1% set a 41-year high.

Today, investors are betting that slowing inflation is a good signal that a sharp recession is less likely. Energy and food prices are moderating, and many companies are still reporting upbeat quarterly results and expectations. Upstart (NASDAQ: UPST) and Affirm Holdings (NASDAQ: AFRM) are at the leading edge of that consumer risk, and their highly volatile stocks are up big today on the optimistic reading of the inflation data.

Today's noteworthy postearnings gainers include The Trade Desk (NASDAQ: TTD), with shares up more than 36% at one point. Investors are also betting on better prospects for renewable and low-carbon energy companies. Shoals Technologies (NASDAQ: SHLS) and Plug Power (NASDAQ: PLUG) are two of those up big today.

When near-record inflation is a "good" thing

While the CPI is still very high, today's interpretation of the data was generally positive. We have seen energy and food prices begin to come down, and some areas of the global supply chain crisis are improving, too. Semiconductor companies, in particular, are reporting that the cycle in that industry is turning from too much demand to too much supply in certain product categories. While that's not a positive for shareholders in the short term, it's positive for the broader economy that the supply shortfall that's kept many products off the shelves and prices very high might be starting to ease.

Investors see this as very positive for Upstart, the AI-driven consumer lending platform, and for buy now, pay later specialist Affirm Holdings, with their shares up 16% and 13%, respectively, at this writing. Both companies live at the leading edge of consumer credit risk. By and large, the bulk of their lending products are unsecured consumer debt (though Upstart is diversifying into auto lending), which is the first kind of credit to see increased rates of default in weak economic periods. However, today's gains could prove temporary, as both saw their stocks fall sharply earlier this week on earnings and economic speculation.

The Trade Desk's second quarter was, by almost every measure, exceedingly strong. It reported 35% revenue growth, continued to retain more than 95% of its customers, and more than doubled its operating cash flows. If there's one not-great number, it's stock-based compensation, which almost tripled year over year and was the primary factor in The Trade Desk reporting a GAAP loss.

What happens next? Plenty of volatility as investors try to telegraph what happens in the near term. Investors in both companies should be prepared for that and acknowledge that their risks will be amplified if consumers continue to get squeezed. The companies' long-term prospects, however, are tied to their ability to keep disrupting the traditional credit card and consumer lending industries.

The Trade Desk shakes off earnings woes for adtech

The Trade Desk's results were a breath of fresh air for the adtech industry. In recent weeks, many of the companies that are deeply involved in the growing digital ad industry have reported somewhat mixed results. The mature giants like Facebook parent Meta Platforms (NASDAQ: META) have reported strong ad volume but falling ad rates, as marketers have cut ad spending.

Investors seem happy to trade a portion of equity to co-founder and CEO Jeff Green, however, as part of his compensation. Shares are up a massive 36% at this writing.

Cleantech stocks cleaning up today -- can they keep it up?

The stocks of a number of clean energy companies are up big today. Shares of Shoals Technologies, which makes electrical wiring for utility-scale solar plants, are up 14% today, joining hydrogen companies Plug Power and Bloom Energy (NYSE: BE). The latter's shares are up more than 15% after Bloom reported expectations-beating earnings and said it expects to be cash flow positive for the full year.

Plug Power reported on August 9. Unlike Bloom, its results came up short of expectations. However, analysts continued to have bullish outlooks, raising their price targets on the company, partly due to the expected tailwinds of the recently passed landmark federal climate legislation.

Looking beyond near-term price targets and potential tailwinds from the new climate law, investors should focus on the financials. Plug Power has a very long record of cash burn (it has never had a positive-cash-flow year in its multidecade history), while Shoals and Bloom have demonstrated positive cash flows in the past and are trending in positive directions.

Optimistic thinking is nice, but as investors, we mustn't forget that long-term wealth comes from a healthy -- growing -- bottom line.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Nasdaq surges after inflation data: Why the top tech and growth stocks moved higher appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jason Hall has positions in Bloom Energy Corp, The Trade Desk, and Upstart Holdings, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Affirm Holdings, Inc., Meta Platforms, Inc., The Trade Desk, and Upstart Holdings, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc., The Trade Desk, and Upstart Holdings, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Boy, the good volatility sure is nice. The Nasdaq Composite Index (NASDAQ: .IXIC)  is up 329 points, or 2.7%, as of 2:34 p.m. ET on Aug. 3, 2022. Some of the biggest Nasdaq gainers include Moderna (NASDAQ: MRNA) and PayPal (NASDAQ: PYPL), both up after reporting earnings, and MercadoLibre (NASDAQ: MELI), ahead of earnings.

Shares of Okta (NASDAQ: OKTA) are on the rise, as well, after a competitor was acquired at a nice premium. Shares of social media giant Meta Platforms (NASDAQ: META) are up 5%, finally starting to reverse some of the losses of the past year following its relatively solid earnings results a few days ago. 

Upbeat earnings, high hopes leading to today's bounce

Both biotech-giant Moderna and payments-king PayPal reported second-quarter results before trading today. Moderna investors loved the 7% revenue growth and were happy with the $5.24 earnings per share that smoked expectations. In short, shareholders (and buyers) continue to have high expectations for the company.

However, it's not all roses (and COVID-19 booster shots). The company took a $499 million write-down for expired vaccine inventory -- more than double the amount in the first quarter -- and COVID-19 booster-shot volume and revenue has slowed. Moderna's biggest unanswered question: What is its next act if COVID-19 vaccines aren't the same cash cow in the coming years?

PayPal similarly reported better-than expected second-quarter results, with 13% payment volume pushing revenue up 10%, adjusting for currency exchange. While the company reported much slower growth than it has experienced over the past few years, double-digit growth in an environment where people are returning to more in-person shopping is a very real positive. CEO Dan Schulman pointed out that the company's investment in digital wallets and online-checkout solutions is paying off with increased market share. 

Shares of Latin American e-commerce and payments-giant MercadoLibre are also rocketing higher today, ahead of the company's earnings report, which is scheduled after market close on Wednesday. Like other e-commerce and web-based companies over the past year, its stock has been pummeled. PayPal and Amazon both turned in results investors liked this week, and it seems like investors have high hopes for MercadoLibre, too. 

Okta gets a buyout premium

Cybersecurity is one of the hottest segments out there right now. Billions of dollars will flow into the sector from corporate budgets in the years to come as companies take steps to protect their data and infrastructure from bad actors.

Private-equity firm Thoma Bravo certainly sees the potential. Today's deal for it to buy Ping Identity (NYSE: PING) for a 63% premium to its prior share price is strong evidence of that. 

Investors also seem to believe that Okta, a leader in identity verification and access management, might very well be worth a good bit more than Mr. Market has been valuing it lately. 

Has Meta finally bottomed?

Meta Platforms investors may have finally seen peak pessimism pass. The shares are still down more than half from the company's all-time high. This occurred after it reported that second-quarter revenue fell, which was the first revenue decline in the company's history as a public company.

Since then, however, it seems that investors have processed the results and realized that active users grew on all its social media platforms and ad volume was up by double digits. In other words, the company's biggest challenge right now seems to be weak ad demand overall, and that's pulling down prices. This is a cyclical, temporary concern and maybe not as big a problem as it has seemed.

Despite its challenges, Meta remains head and shoulders above every other social media company as an ad platform. At 14 times trailing earnings and 17 times expected forward earnings, Meta's shares are getting very attractive, and today's upwards movement supports that. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jason Hall has positions in MercadoLibre. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MercadoLibre, Meta Platforms, Inc., and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investors are breathing a sigh of relief on Dec. 2 following yesterday's Dow Jones Industrials (DJINDICES: ^DJI) 462-point decline. At 2:11 p.m. ET, the Dow Jones is up 680 points, or 2% higher, as investor worry about the Omicron variant of the coronavirus fades. Today's gains are broad, with 26 of the Dow Jones' 30 component stocks, including Boeing, higher today. 

Today's gains are led by aerospace giant Boeing (NYSE: BA), one of yesterday's worst performers. Shares are up more than 5% on both the reduced fears that Omicron will lead to broad travel bans and news that Chinese regulators are set to recertify the 737 MAX for commercial operation in that country. 

Following on Boeing's heels are payments and credit card giants Visa (NYSE: V) and American Express (NYSE: AXP), with shares up more than 4% on a hopeful outlook about the recovery of global travel and spending. Shares of yesterday's biggest loser, Salesforce.com (NYSE: CRM), are also up almost 3% today following yesterday's double-digit drop after giving underwhelming guidance for its fourth quarter. 

Today's worst-performing Dow stock is Apple (NASDAQ: AAPL), down more than 1% on rumors that demand for the iPhone 13 is falling. 

Boeing investors hopeful on China and continued travel recovery

Word first got out a couple of weeks ago that the Civil Aviation Administration of China (CAAC) was getting closer to letting the company's flagship, narrow-body jet return to commercial service. But a report in The Wall Street Journal on Thursday offered more detail, including what looks like a complete list of changes it requires Boeing to make. That's a serious step toward recertification that would also likely lead to a big jump in orders for Boeing aircraft to service Chinese markets after a multiyear freeze on sales to Chinese operators. 

Boeing's gains, exceeding most stocks today, weren't just a product of good news out of China. Like the other consumer and travel-related companies that gained sharply today, investors are also betting that travel and spending will continue to trend higher, and the initial worries about the Omicron coronavirus variant are probably overdone. 

Omicron bull market?

It seems that many investors believe that to be the case, with most of yesterday's biggest losers and many of the Dow Jones stocks that fell yesterday reporting gains. These include Visa and American Express, which have seen most of their in-country payment volume recover and surge past 2019 levels. However, both have seen cross-border transactions from travel continue to lag pre-COVID numbers. Investors also sent bank stocks up today, with Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) up more than 2.5% on hopes for continued economic health and the potential that interest rates will move higher sooner rather than later. That's a positive for lenders. 

Shares of Caterpillar (NYSE: CAT) and Walt Disney (NYSE: DIS) also gained more than 2.5% today, on expectations that businesses will continue to buy heavy equipment, and consumers will continue to spend and increasingly travel, ideally to Disney resorts and theme parks. Home Depot (NYSE: HD), one of yesterday's biggest winners, gained another 2% today as investors remain convinced that the home improvement giant will continue to win customers looking to improve their current home or update the home they just bought. Housing demand continues to remain sky-high, a positive indicator for the home improvement giant's prospects. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jason Hall owns shares of Visa and Walt Disney. American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Salesforce.com. The Motley Fool Australia has recommended Apple, Salesforce.com, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

TWTR data by YCharts

So what

Now what

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Twitter stock was up 12% last week appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jason Hall has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook and Twitter. The Motley Fool Australia has recommended Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.