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“We are seeing a huge rotation out of high multiple, ‘high flying’ tech stocks this week for a few reasons,” said Jeff Marks, an analyst with Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio.

“First, I think the fiasco of the WeWork IPO has caused investors to rethink the frothy valuations placed on similar high growth but low-to-no-profit companies.

“With these tech names being huge winners over the past few years, some investors may be in favor of locking in their gains as opposed to risking a higher tax bill in the future,” he added.

Momentum stocks that trade at lavish multiples are falling out of favor among institutional investors that often drive broader market moves, added RealMoney contributor James “RevShark” DePorre.