Tech wreck 2.0 has already seen many firms lose half their value. So how bad will it get?

Airtasker’s co-founder and chief executive, Tim Fung, admits there may have been a bit too much enthusiasm from investors when his company debuted on the ASX, amid the COVID-19 pandemic.

“We had an extremely good first few days as a publicly listed company, where I think the share price tripled over a couple of days,” Mr Fung told ABC News.

Shortly after it started trading on the Australian stock exchange in late March, 2021, Airtasker’s share price peaked at $ 1.96.

But it has dropped by more than 60 percent since then.

Other tech companies are in a similar boat. Most have experienced large peak-to-trough declines between 2020 and 2022, including Zip Co (-85 percent), Appen (-82 percent), Xero (-38 percent), Altium (-36 percent), Block (-31 percent) and WiseTech Global (-31 percent).

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Tech sector sold off heavily over fears of interest rate hikes.(David Chau)

Tech falls on rate hike expectations

When COVID-19 first struck in early 2020, global markets plunged by more than 30 percent in just several weeks.

To avoid a repeat of the Great Depression, central banks slashed interest rates to near zero (or less), and pumped trillions of dollars of extra cash into the world economy.

Many countries were able to snap out of recession very quickly. However, the side effect was that it jacked-up house prices, along with the value of shares and cryptocurrencies.


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