Tech Slump Drags QQQ ETF Lower Amid AI Bubble Concerns
The Invesco QQQ ETF (QQQ) fell 0.85% on Monday as tech valuations came under scrutiny. Pre-market trading Tuesday showed a further 0.57% decline, extending the ETF's five-day loss to 2.59% despite a 19.6% year-to-date gain.
Analysts maintain a Moderate Buy rating on QQQ, with a $898.10 price target implying 48.8% upside potential. Netflix, MicroStrategy, and Atlassian lead holdings with highest projected gains, while Micron, Tesla, and Warner Bros. Discovery show the greatest downside risk.
The ETF's Smart Score of seven suggests market-aligned performance expectations. Tech sector weakness appears driven by growing skepticism about AI-related valuations rather than fundamental deterioration.