Each of the tech stocks had fallen significantly during afternoon trading, with Apple down 2.7%, Appian falling 5.3%, and Lemonade down 6.8%.
Tech investors have been jittery recently as the potential for conflict between Ukraine and Russia has increased. Yesterday, Russian President Vladimir Putin formally recognized the independence of two regions in Ukraine, which have been held by Russian-backed rebels.
Russia has also issued a decree to send its troops into those breakaway regions, which could further escalate the situation. The European Union has already issued sanctions today against Russia for its provocations with Ukraine and President Joe Biden is expected to announce U.S. sanctions against Russia later today.
Any instability among countries can cause investors to be nervous, and that appears to be what's happening today with Apple, Appian, and Lemonade shares.
Additionally, some Lemonade investors may be selling their shares ahead of the company's upcoming quarterly results. Lemonade will release its fourth-quarter and full-year 2021 results tomorrow after the market closes.
Today's share price plunge for Apple, Appian, and Lemonade comes on top of months of volatility in the technology sector.
Investors are growing concerned with sky-high inflation that's reached levels consumers haven't experienced in 40 years. Rising inflation, in turn, is prompting the Federal Reserve to likely raise interest rates several times this year, with the first increase expected as soon as next month.
Rising interest rates aren't great for these companies and other growth stocks because they make the cost of borrowing money more expensive. When that happens, some companies scale back their investments, which impedes their growth.
Now, with tensions high in Europe, investors are growing even more pessimistic about tech stocks, and the market in general. Along with Apple, Appian, and Lemonade's share price drops, the S&P 500 fell 1.5% as of this afternoon.
Long-term investors should keep in mind, though, that nothing has fundamentally changed with these companies. In fact, Appian just reported very strong fourth-quarter results just last week.
Apple, Appian, and Lemonade are experiencing share price volatility because of outside forces and macroeconomic events, not because of underlying problems with their businesses. Which should give long-term investors a reason to ride out the current turbulence.