Don’t Make This Mistake When Investing in Tech

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of Nomi Prins and her team of global experts. You’ll find all our issues [here](. And if you have questions or comments, shoot us a note anytime [here]( or at feedback@rogueeconomics.com. Nomi’s Note: For today’s guest essay, I’m passing the baton to my colleague, tech investing legend Jeff Brown. Jeff has three decades of experience in the tech sector. He’s an expert on identifying and profiting from some of the greatest tech advances of our time. He has already made gains of 900%… 2,338%… 3,900%… even an incredible 5,344%. And when I read his message about one key mistake investors make when investing in tech stocks, I immediately wanted to share it with you. Read on below… --------------------------------------------------------------- The Companies to Avoid When Investing in Tech By Jeff Brown, Editor, The Bleeding Edge [Jeff Brown] For over two years, the stock market seemed like it could only surge higher… From the fear-driven pandemic lows set in March 2020, all three of the major American indices had roughly doubled by the end of 2021. Both stocks and cryptocurrencies absolutely skyrocketed over the past two years. And with all this bullish sentiment, we saw a surge in new companies going public… often at valuations that simply made no sense. [Featured: Why Are These 4 Billionaires Screaming the Same Warning?]( Consider the cloud computing software company Snowflake (SNOW), for example… When Snowflake went public in 2020, it was valued at an astronomical enterprise value-to-sales (EV/sales) ratio of 177. That valuation said the company’s worth was equivalent to 177 years of the company’s revenue. That’s simply nonsensical. Investing at a valuation that high in an initial public offering (IPO) is a near guarantee that we will lose money. And I was right, as you can see from this chart… [Chart] Following Snowflake’s IPO in 2020, shares fell over 50% from its peak. Over most of 2021, its stock surged once more… Yet since then, shares have tumbled nearly 45%. With the broader sell-off in tech stocks this year, Snowflake’s shares are now even further below their previous highs. Of course, Snowflake is just one of many stocks being affected by the current round of volatility… For the first time in over a decade, a nearly record-setting number of tech stocks have fallen over 50% from their highs. And this massive sell-off in tech is causing many other high-flying stocks to finally come back down to Earth… Recommended Link [Have you heard of EUV?]( [image]( Have you heard of EUV? It’s a brand-new, $180 million technology capable of making the most advanced microchips in history. And only one company owns the patents. Legendary tech investor Jeff Brown says this is his choice as the No. 1 Microchip Stock of 2022. [Click here to get the name and ticker symbol.]( -- The “Toxic” Stock Sell-Off The truth is, the massive selling we’re seeing in the stock market right now has been years in the making. In fact, I anticipated it would happen after the market crash of March 2020. What we saw with the markets during the first half of March 2020 is something I’ll never forget. I’d never seen this kind of widespread fear and panic, not only in the stock markets but in our daily lives as well. And even as the markets recovered, I observed one persistent trend in IPOs that was alarming. I saw a lot of tech stocks trading at insanely high valuations… valuations so high that even if those companies met the aggressive growth assumptions, the stocks wouldn’t rise much over the next decade. And I predicted that if these overvalued companies saw even one misstep or market downturn, the stocks would plummet. Recommended Link [INSANE April Crypto Event — Billionaires, Banks READY]( [image]( This is a crypto emergency. According to Teeka Tiwari, voted #1 Most Trusted Crypto Expert by 130,000 analysts… April 1st, 2022... …could be your LAST CHANCE to capture the biggest crypto profits. Teeka’s identified seven billionaires including Elon Musk, Peter Thiel, and Mark Cuban... Along with major banks like JPMorgan, UBS, and Goldman Sachs... Who are now positioned to profit BEFORE the April 1st “countdown” event. If you own any crypto… Or plan to buy in 2022… Watch this video first… [See INSANE April 1st Crypto Prediction Now. (#1 Best Crypto Revealed Inside Free).]( -- In August 2020, I predicted a “second wave” of stock market selling would hit within the next couple of years. And I profiled several “toxic” stocks to avoid at all costs. With the recent volatility, we’re seeing my thesis play out… If we look back over the last year, the peak-to-trough losses for some of these companies are truly staggering. Take a look at these examples: - Zoom Video Communications (ZM): -83% - Fastly (FSLY): -89% - Snowflake (SNOW): -58% - Coupa Software (COUP): -75% I’m not trying to rub salt in any wounds. These aren’t all bad companies. And some develop technology that I’m very excited about. But I want you to take away one important point from all of this… It’s important to understand that valuations matter. Picking great – not just “trendy” – investments matters. Even the best tech companies with industry-leading technology are not good investments if they are trading at too high of a valuation. Investing at an irrationally high valuation in a fantastic company will still lead to losses. It’s these companies I want you to avoid. Recommended Link [[VIDEO] Why Your Next Flat Tire could Bankrupt You]( Soon a deadly economic force could drive the price of tires from $120… to $1,200 PER TIRE! [image]( Few people alive today have seen this force before… Yet each of the 30 times it struck throughout history… Once-upstanding citizens, with plenty of money, were thrust into poverty. [Follow this simple action plan]( — and you’ll be able to protect your family. You could even emerge from this crisis much richer than you are right now. [Click here for full details.]( -- Which Companies Can Withstand Volatility? With the markets punishing high-flying companies like the ones I profiled, I know many investors have one question on their minds: Which tech companies can withstand all the volatility we’re seeing in the broader market? Though there are many exciting opportunities in public tech companies… I want to turn our attention to another exciting area of investment that can bring us truly generational wealth over time. Unlike stocks, these investments are shielded from the volatility of broader markets. [Featured: Jeff Brown: “After this, America will NEVER look the same.”]( In many ways, they are the best-kept secrets in tech. And these investments have been used for decades by wealthy and connected families to protect and grow their wealth through good economic times and bad. And I’m going to hold a very special investment summit to tell readers all about these opportunities… On Wednesday, April 6, at 8 p.m. ET, I’ll provide all the details during my [State of the Tech Market summit](. And I’d like to invite you to attend. Simply sign up by going [right here](. They’re trading at valuations lower than most people ever see in the stock market… They won’t go down in a recession… And they won’t go down in a market crash. I’m excited to tell you all about this unique group of investments on April 6 at 8 p.m. ET. I’d love to see you there. Regards, Jeff Brown Editor, The Bleeding Edge --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Our Volatility Hedge for 2022). --------------------------------------------------------------- MAILBAG Readers appreciate[Nomi’s recent video update]( and thank her for her regular, interesting analysis… I am a big friend of video; it is just like being in class. Your expertise in speaking and getting the main points across, without being obnoxiously loud, is a gift well appreciated. Thank you for helping me. – Jerry M. Hi Nomi, thank you for the interesting, well-written, and educated analysis you provide in the Inside Wall Street newsletters. – Randy S. What topics would you like to see Nomi cover more of? What kinds of tech companies do you invest in? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Our Volatility Hedge for 2022). IN CASE YOU MISSED IT… [The 3-Stock Retirement Blueprint]( When most folks think about making money through the markets, they think “buy and hold.” They think “diversification.” And they think about investing in things like index funds. But one man has a different approach… It’s called the “3-Stock Retirement Blueprint.” It’s a way to play 3 stocks – yes, just 3 – and potentially make more money than you would by trading all the rest of them… Or by using an old-fashioned approach. Sound impossible? [Get all the details here]( – including the names and tickers of the three stocks. [Click here now.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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