The Block Inc (ASX: SQ2) share price is under pressure, with the tech sector taking the hardest blow in investor sentiment today.
Investors remain wary of the lingering uncertainty as conflict rages on across Ukraine. Consequently, focus has shifted to risk-off assets and constricted commodities. Meanwhile, the S&P/ASX 200 Info Tech Index (ASX: XIJ) is failing to attract buyers, falling 5.57% so far today.
At the time of writing, Block shares are down 11.02% to $136.09, on pace with some of the worst performers on the market for its size.
There are a couple of factors that could be weighing down the Block share price on Monday, though the most obvious is a widespread disinterest in tech shares.
In recent months, a powerful combination of inflation worries, Ukraine-Russia tensions, and market volatility has resulted in investor appetite for risk waning.
As shown in the chart below, gold miners such as Newcrest Mining Ltd (ASX: NCM) have outperformed compared to the likes of Block. This is telling of how market participants are feeling at the moment.
Given the uncertainty, many people are feeling less confident in those companies that are reliant on a continuation in strong growth to validate their high multiples.
Additionally, the Block share price could be getting trampled due to its removal from the S&P/ASX 20 Index. This was announced after the market had closed on Friday, leaving investors to react to the information today.
Rough run on the block
Since joining the ASX, the Block share price has not been a breadwinner for its shareholders. During this time, the company’s shares have fallen 23%.
It hasn’t exactly been an ideal time for the broader Aussie market either. However, the ASX 200 has experienced a less severe fall, slipping 4.4% over the same time frame.
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