Some of the year’s most expensive stocks encountered a wave of selling as investors moved to lock in gains in the last week of 2020.
Zoom Video Communications Inc. and DocuSign Inc., fell more than 6 per cent on Monday. Both companies have seen their shares soar this year amid a surge in new users and are trading at more than 20 times next year’s projected sales. The average price to estimated sales multiple in the technology-heavy Nasdaq 100 Stock Index is 4.6 times, according to data compiled by Bloomberg.
Among other notable decliners were digital-ad company Trade Desk Inc., which fell 11 per cent, and data-mining company Palantir Technologies Inc., which suffered a 7.6 per cent drop. DoorDash, the food-delivery company whose shares debuted earlier this month, sank 6.7 per cent.
Monday’s declines came as both the Nasdaq 100 and S&P 500 rallied to all-time highs.