These tech stocks are dragging the Invesco QQQ ETF in 2024

Written by

Written on Mar 8, 2024

Reading time 3 minutes

The Invesco QQQ ETF has surged to a record high this year.
Most companies in the fund have risen sharply so far.
Other names like Tesla, WBD, and Atlassian have plunged hard.

The Invesco QQQ ETF continued its strong comeback this week as it jumped to its highest point on record. It has jumped by over 8.7% in 2024 and by 50% in the past 12 months, adding trillions of value.

QQQ ETF gainers and laggards

Most companies in the ETF have done well this year after publishing strong financial results and after the Federal Reserve signalled that it will cut rates in the second half of 2026. In line with this, the best-performing companies in the Invesco QQQ and the Nasdaq 100 index are Nvidia, Meta Platforms, AMD, ASML, and DoorDash.

The other notable gainers in the ETF are Applied Sciences, CrowdStrike, Lam Research, Broadcom, and Netflix. These semiconductor companies like Broadcom and Nvidia have surged hard because of the rising demand for artificial intelligence.

Still, not all QQQ stocks have jumped sharply this year. Tesla stock price has dropped by more than 28% in 2024, making it the worst performer in the Nasdaq 100 index. It has fallen because of the rising concerns about the EV industry.

The EV sector is struggling because of the rising supply around the world, which has led to lower prices and margins. Most EV stocks like Lucid Motors, Fisker, and Rivian have plunged this year.

PDD Holdings and WBD stocks have plunged

PDD Holdings, the parent of Temu and Pinduoduo is the other top laggard in the QQQ this year. Its stock has fallen by almost 20% this year as concerns about its Temu brand has risen. While Temu has grown at a fast pace in the past few years, there are signs that its growth has hit a wall.

Some investors are worried that Temu could follow the footsteps of Wish.com, a company that had a similar business mode. After years of fast growth, Wish.com was sold this year for a bargain price after losing millions of shoppers and dollars.

The main difference between Wish.com and Temu is that the latter has a strong balance sheet with over $25 billion in cash. This means that it can support its growth for a long period before thinking of profits.

Warner Bros. Media (WBD) stock price has crashed by over 21% this year amid concerns about its business and profitability. The company owns HBO Max, which is still growing at a fast pace. But it also owns many cable television stations like CNN, Food Network, and Animal Planet that are not doing well.

Atlassian, the parent company of Jira and Trello, has dropped by 15% after its results showed that its business was slowing. The fact that its insiders are dumping the stock has not helped the situation.

The other top companies that are dragging the Nasdaq 100 index are Apple, GlobalFoundries, ZScaler, Adobe, Intel, and PayPal. All these stocks have plunged by over 10% in 2024.