Selloff in Highly Priced Tech Stocks Is Pressuring Hedge Funds That Piled In
- Exposure to expensive tech stocks increased to two-decade high
- Rising yields are weighing on richly valued tech shares
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Losses are picking up in very-high-priced technology stocks that had recently grown in popularity among hedge funds.
Farfetch Ltd. and Snowflake Inc. fell, driving a basket of software and internet companies that have yet to earn any money down more than 5%, its biggest decline since March, data compiled by Goldman Sachs Group Inc. show. Farfetch plunged 14% after the online apparel retailer trimmed its full-year forecast for digital growth. Snowflake, a software developer due to report results next week, sank 9%.