In what media reports suggest is the worst day for technology stocks on the Nasdaq index, biotech, Internet and other tech-related stock prices plummeted just over three percent on April 10, leading many to wonder what it means for an industry that has seen numerous launches from major companies in recent days.

By April 11, the effects of the American market were being felt in Asia, where investors were extremely conservative and losses were expected. In an effort to boost optimism, Google announced that it was opening a 24-hour period for potential users to purchase the controversial Google Glass head gear. It is unclear if that move will see a rebound.

The overall drop is worrying observers, who fear that the recent skyrocketing of stocks on the Nasdaq index could become a trend, where announcements push the industry up, while any negative news drives them down in record fashion.

Leading the downturn were biotech stocks, which could have gone down as a result of a number of companies expected to post losses and investors wary of the increasing "research" that is being done in the sector, but that won't see market fruition for years to come.

"We've been due. We haven't really had a good catalyst for one, but the quarter's over, we have an earnings season, we have some stocks that are a little overheated, there's just a lot of small negatives that are sort of piling together and creating this confluence of anxiety," said Randy Frederick trading and derivatives managing director at Schwab Center for Financial Research.

Prices for pharmaceuticals and other biotech products are on the rise, increasingly becoming out of reach for average citizens, which has left investors fearful that even with widespread distribution, the overall costs remain untenable for many.

While observers are yet to push the idea that another "bubble" could burst - similar to the late 1990s tech startup bubble bursting that saw many companies go under - it is important to watch the market and how investors are viewing recent trends and announcements.

For biotech and Internet companies, the stock market has remained tricky, with many of the companies still yet to fully grasp the nature of the market and public investors in how they view company valuation and the future.

The main cause, reports suggest, is that the recent public IPOs to have hit the market have also left a vacuum where valuation is directly linked to the day-to-day business of the major tech companies, which has fed fuel to the worry that over-valuation has driven stock prices to levels that are not representative of the actual company value, leading to the backlash that could last for days, even weeks to come.

ⓒ 2021 All rights reserved. Do not reproduce without permission.