Hi, If you track the stock market regularly then you must have seen that in the last few days there is a lot of decrease in the new-age tech stocks. Be it Zomato or Paytm or Nykaa, stocks have seen huge profit bookings in the last few days. After the stock listing of Paytm, till date, it is trading low from its issue price. Along with this, the shares of Zomato, Nykaa, and Policy Bazaar are also trading near their all-time low. So in today's video, we will discuss why the shares of companies are going down. And after that, we will also know which strategy you should follow as an investor. But before proceeding, if you haven't subscribed to your channel then click on subscribe button now and like the video. Because we come up with content every week that will help you become a better investor and generate wealth. The first reason for the falling of shares is their high valuation listing. When these companies launched their IPOs, there was an IPO rally going on in the market and they had very high valuations. As per Experts, these companies had brought their IPO at a very high valuation. And due to the hype of IPOs, some of the companies were listed at a premium price, due to which the valuations increased further. But as you know most of the companies are still not profitable. Due to nonprofitable, these shares are being priced higher to the investors and do not want the investors to evaluate the companies. Because of this in the stocks of companies are falling. The second reason is increasing inflation in the US. As you know, inflation in the United States has been rising very rapidly recently and is at its 40-year high. In order to control rising inflation, the central bank can raise the interest rates of FED government bonds. Due to this, you may have noticed that the US stock market and even the Indian equity markets have improved because when bond yields rise, large investors and institutions prefer to divert their capital from equities and invest in bonds. So when there was a market correction, it was seen that most of the decline happened in the new-age tech companies. Then the third reason is high competition. Of all the new-age tech companies listed on the stock market, none of them has any strong economic moat. Economic moat refers to a factor that other companies do not have or that other companies cannot develop quickly. There are many more unlisted startups that are giving strong competition to the companies in the market. Apart from this, new startups are also getting funding and the competition is increasing continuously. Therefore, it has become even more difficult for companies to acquire new users. With increasing competition, now has to spend more money to acquire new customers in the market, which has affected his margins. So investors are not showing much interest in startups because their stocks are declining. The next reason is the listing of new tech stocks. As you know that in the year 2022 as well as in 2021, many companies are launching their IPO. These include some internet companies as well. So as more internet companies are getting listed in the market, investors are getting more options. When investors have more options, the 1-2 stocks that were getting higher valuations due to high premiums start falling. Due to this, the stock of internet companies is also declining. After this, the fifth reason is - weak quarterly results. All companies have declared their FY22 third-quarter results. If we talk about Zomato, then the company started its operations in 180 new cities in the last quarter. But even after that, the company's Gross Order Value (GoV) saw a growth of only 1.7% on a QoQ basis. Apart from this, there was also a drop in the average monthly transaction users of the company. This number was 15.5 million in the September quarter, which came down to 15.3 million in the December quarter. So this can also be a reason for the fall in the stock of Zomato. Similarly, if we talk about Paytm, the consolidated revenue of the company has grown by 89% on a YoY basis But still, there are many questions about the profitability of the company. In fact, the company has suffered more losses in this quarter as compared to the quarter of the previous year. So a lot of investors are booking profits. In the companies, we have to discuss why we are coming down. But now, what should you do as an investor? Let's discuss that too. In companies, you should analyze from the perspective of long-term investment. If you think that the business model of the company is strong and can generate good profit in the future, then you can take advantage of the fall. After detailed research and considering your risk profile, you can think of investing in these companies. But it may also happen that you have faith in the business but you do not want to take risks and want to take advantage of this decline. So in such a case, you can follow the SIP format. And you can work your risk by investing all your money at one level to invest at different levels. So here we discussed why the shares of new age internet companies are falling and what you should do as an investor. Comment us your views about the companies. Can these companies also become the next multi-bagger profitable in the future or will they not beat the competition? You can write your views in the comments. We remind you that these videos are for educational purposes only, and do not recommend any kind of buy/sell. 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