In Bad Year for Tech Stocks, Three Boston Companies Dropped More than 99%

A Boston Globe tech reporter checked last year's performance for the region's tech companies:A list of the worst local performers includes some truly bottom-of-the-barrel returns. Cannabis tech company Agrify in Billerica suffered a 99.6 percent stock drop in 2022. Wireless Internet service Starry and diet-device maker Gelesis were close behind with losses of 99.5 and 99.3 percent, respectively. (All stock prices are as of Dec. 28.) Agrify suffered a recent sales drop and growing losses while ending the year facing a customer lawsuit and possible hostile takeover. Starry was unable to raise the funds needed to continue building its network and put itself up for sale last month. And Gelesis fell far short of its sales forecast, bringing in about $30 million of revenue compared to a projection of $171 million presented when its merger with Capstar Special Purpose Acquisition Corp. was announced in 2021.... Companies like Starry and Gelesis that went public by merging with blank-check firms had a particularly tough year, as investors flipped from euphoria to panic on the so-called SPAC boom. The average 2022 return for 21 such stocks tracked by the Globe was a loss of 70 percent. Of tech companies that went public the traditional way, the average loss was 45 percent. Toast, which did a standard IPO at the same time Ginkgo Bioworks completed its SPAC deal, lost 51 percent for the year while Ginkgo plunged 80 percent. In the wider market of tech stocks, the article notes that the S&P 500 index dropped 20%, while the Nasdaq Composite plunged 34 percent, "and tech giants such as Apple, Amazon, and Meta shed hundreds of billions of dollars of market value." "Of 60 local tech stocks tracked by the Globe, only two posted positive returns: robotics maker Symbotic in Wilmington and payments company WEX in Portland, Maine.... Perhaps in 2023, the winners column will be a little longer."

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