THG value continues to drop as tech loses gloss

THG value continues to drop as tech loses gloss

THE WHAT? THG saw some 20 percent shaved off its share price on Monday as the market continued to shy away from investing in ‘hyped’ technology firms, according to a report published by the Financial Times.

THE DETAILS As a result, the owner of Lookfantastic’s market value dropped below £1.5 billion for the first time.

The company has issued a profit warning, signalling that it was on course to report below-guidance profit for full-year 2021 as rising commodity prices and FX movement hit margins.

THE WHY? THG’s decline is part and parcel of a wider ‘correction’ to tech stocks worldwide as retail investors backpeddle on their love affair with all things digital. Whispers have circled around the UK tech firm since its flotation with concerns over the company’s corporate governance as well as doubts over its Ingenuity arm causing the share price to drop considerably.