Please ensure Javascript is enabled for purposes of website accessibility

Why Uber, Western Digital, and SS&C Technologies Stocks All Fell 10% (and More) Today

By Rich Smith - Mar 18, 2020 at 2:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

When Wall Street gets fearful, maybe it's time for you to get greedy.

What happened

Uber (UBER -3.41%). Western Digital (WDC -1.76%). SS&C Technologies (SSNC -2.05%).

What do the world's biggest ridesharing company, a maker of computer hard drives, and a software maker for the financial services and healthcare industries have in common? Not a whole lot -- except for one big thing: All three of these tech stocks are down more than 10% in Wednesday trading.

As of 12:40 p.m. EDT, Uber is down 19.2%, Western Digital 12.8%, and SS&C 14.2% -- and coronavirus is to blame.

3 red arrows going down and crashing through the floor

Image source: Getty Images.

So what

According to the World Health Organization, there are now more than 193,000 confirmed cases of COVID-19 worldwide. Deaths have surpassed 7,800, and 164 of the globe's 195 countries have reported cases of the disease -- that's 84% of all countries.

In Washington, there's talk of a $1 trillion bailout program -- and warnings from Treasury Secretary Steven Mnuchin that if it fails, we could see 20% unemployment in the U.S.  

Coronavirus may still require person-to-person contact to spread -- but there's panic in the air.

Now what

But that doesn't mean you should panic. Warren Buffett has famously said, when Wall Street is fearful, that's the best time for individual investors to get greedy, and buy stocks at a discount. I can tell you firsthand this is what I am doing right now.

For years, I've complained that stocks looked too expensive to buy, with the S&P 500 regularly topping eye-popping valuations of 25 times trailing earnings and more. Well, it doesn't cost that anymore. In fact, at an average P/E ratio of 17.8, the S&P to me looks like it's finally almost reasonably priced as a whole -- and within the index, there are certainly individual stocks to be found selling at even cheaper valuations.

When stocks as unrelated one to another as Uber, Western Digital, and SS&C all start plummeting in tandem, that's your cue that panic has set in -- and it may be your cue to buy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Western Digital Corporation Stock Quote
Western Digital Corporation
$46.74 (-1.76%) $0.84
SS&C Technologies Holdings, Inc. Stock Quote
SS&C Technologies Holdings, Inc.
$59.18 (-2.05%) $-1.24
Uber Technologies, Inc. Stock Quote
Uber Technologies, Inc.
$22.08 (-3.41%) $0.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.