Investors claim that unprofitable firms have underperformed this year and are expected to do so going forward.
Their equities are riskier to invest in than normal because to the weakening economy and the potential for a recession.
Which suggests that the peak of speculative activity during the pandemic may still be a ways off.
Goldman Sachs Group Inc.'s collection of loss-making tech businesses has fallen 57% in 2022, including a decline of 0.3% on Monday.
the Nasdaq 100 Index has decreased by 32%, while an exchange-traded fund that concentrates on dividend-paying businesses in the sector has declined 22% on a total-return basis.
The Federal Reserve has aggressively raised rates to combat inflation, which has weighed on companies that are priced conservatively.