It isn’t just retail investors caught up in the tech wreck of 2022.

Cathie Wood, who heads up the New York-based investment firm Ark Invest, has had some big bets on technology including Zoom and Roblox, stocks that have plunged since their highs last year. Her Ark Innovation ETF is down 50 per cent on January last year.

“Give us five years. We are running a deep value portfolio,” Wood said hopefully last week, claiming innovation was in the “bargain basement” territory.

“Our technology stocks are way undervalued relative to their potential.”

But it’s clear a lot of people don’t have the nerve for the sector. The tech-heavy Nasdaq index has lost 2000 points since the start of the year.

Brisbane battery materials company Novonix has also seen its value plummet. The one-time market darling is trading at $5.61, down from its $13 highs late last year. On one day in December its market value plunged by $3 billion for no apparent reason. It recovered but then joined the downward slide of other tech stocks.

Tritium had one perfect day in February when it had US President Joe Biden cheering it on. Its shares more than doubled from $US6.84 to $US15.70, but has since fallen back to $US8.13. It joined the index in January at a price just below $US10.

Not much has changed about the fundamentals of the sector, the decline is about global sentiment. Europe is on the cusp of war and inflation has started galloping across the major economies and because the tech sector relies heavily on big bets it is often where declines are most savage.

Megaport is down 32 per cent so far this year, Novonix 46 per cent, Li-S 29 per cent, Superloop 10 per cent, NextDC 21 per cent. Technology One is down 24 per cent.

The Block (previously Square), which bought Afterpay in Australia’s richest ever takeover, is down 18 per cent on the ASX.

But analysts have not given up on the sector. Data3 is down only 9 per cent for the year so far but its profit is booming. The Brisbane company’s earnings jumped 33 per cent year on year and analysts at Morgans Stockbroking pointed out that the digital transformation was still a priority for businesses and Data3 had a big order book.

Morgans has the stock as an “Add”.

Telstra has a similar recommendation with strong underlying growth but its share price is down 7 per cent for the year.

Megaport is listed as a ”hold” at Morgans, but the broker has a long term view on the stock which it said had strong tailwinds and management execution had been “exceptional”.

Firetrail has also put its faith in Megaport and retains a high conviction for the stock. CMC has it as a “strong buy”