The Futility of Trying to Time the Market: How Chasing Last Year's Losers Can Ruin Your Investment Strategy

Sunday 30th of March 2025 10:25:00

Investors Flock to Worst-Performing Stocks in the Nasdaq 100

March 30, 2025 - Despite the Nasdaq 100's impressive gains over the past year, not all of its constituents have performed equally well. In fact, some of the worst-performing stocks in the index have seen their share prices plummet, leaving investors wondering if it's time to get in on the action.

According to data from Yahoo Finance, some of the Nasdaq 100's worst-performing stocks year-to-date include:

  • Zoom Video Communications (ZM) - down 43.1% in 2025
  • DocuSign (DOCU) - down 34.5% in 2025
  • CrowdStrike Holdings (CRWD) - down 32.1% in 2025
  • Slack Technologies (WORK) - down 31.4% in 2025
  • Okta (OKTA) - down 29.5% in 2025

So, why are these stocks underperforming? There are a few reasons.

For Zoom, the main issue is the shift back to in-person meetings and the decline in remote work. As a result, the company's revenue growth has slowed, leading to a decline in its stock price.

DocuSign, meanwhile, has faced increased competition in the electronic signature space, which has put pressure on its pricing power. The company has also struggled to expand its offerings beyond its core product.

CrowdStrike, a cybersecurity company, has faced headwinds due to the decline in the overall cybersecurity market. The company has also faced increased competition from larger players in the space.

Slack, a workplace collaboration platform, has faced challenges as companies have shifted away from remote work and towards more traditional in-office work arrangements. The company has also struggled to expand its offerings beyond its core product.

Okta, a cloud-based identity management company, has faced increased competition in the identity management space. The company has also struggled to expand its offerings beyond its core product.

Despite their poor performance year-to-date, these stocks may have a lot of upside potential. Investors who are willing to take on some risk may find that these companies are undervalued and have the potential to bounce back in the future.

As always, it's important to do your own research and consider your own risk tolerance before investing in any stock.