The Nearmap (ASX:NEA) share price is already down 8% this year. What’s going on

The Nearmap Ltd (ASX: NEA) share price is off to a rough start in 2022. The company’s stock has tumbled this week despite no news being released to the market.

As of the end of last year, the Nearmap share price was $1.55. At the time of writing, it is trading at $1.42. That represents an 8.4% slump over the course of just 4 sessions.

Though, it hasn’t been green skies for the broader market either. The S&P/ASX 200 Index (ASX: XJO) is currently down 0.2% year to date. Meanwhile, the All Ordinaries Index (ASX: XAO) has slid 0.3%.

Let’s take a look at what might be weighing on the aerial imaging company’s stock this week.

What’s driving the Nearmap share price lower?

This week brought a blood bath for the ASX tech sector and the Nearmap share price suffered alongside its peers.

The S&P/ASX All Technology Index (ASX: XTX) has tumbled 5.5% since the beginning of 2022, while the S&P/ASX 200 Info Tech Index (ASX: XIJ) has slumped 6.6%.

ASX tech shares’ slip was made worse by a dire day yesterday. Their struggles followed a rough session in the United States that pushed the tech-heavy Nasdaq index 1.3% lower.

Following Thursday’s session, the Nearmap share price was one of the indexes’ worst performers of 2022 so far.

However, Afterpay Ltd (ASX: APT) outdid the imaging company’s poor trade. The ASX buy now, pay later giant has seen its share price flop 11% since the end of 2021.

Interestingly, the last news the market heard from Nearmap was extremely positive.

On 14 December, the company announced the annualised contract value of its North American business will soon surpass that of its Australian and New Zealand leg. Additionally, its annualised contract value is on track to reach its previously given guidance.  

The announcement boosted the Nearmap share price by 4.7%. It managed to hold onto much of that gain until this week.

However, it’s not all bad news this year — at the time of writing, Nearmap shares are up 1.79% to $1.42.

The post The Nearmap (ASX:NEA) share price is already down 8% this year. What’s going on appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited and Nearmap Ltd. The Motley Fool Australia owns and has recommended Afterpay Limited and Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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