The Megaport Ltd (ASX: MP1) share price has sunk another 2.17% on Wednesday. At the time of writing, it's sitting at $4.96 on no news.
This brings Megaport's losses to 33% for the month, or 74% this year to date.
In wider market moves, the S&P/ASX All Technology Index (ASX: XTX) has crept 50 basis points lower today. It too is down, 39% this year to date.
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Is the Megaport share price in value territory?
Megaport shares are being punished in 2022. Now, with the market sell-off, losses have extended and the share is deep in the red.
Despite the pressure, analysts at Goldman Sachs remain constructive on its outlook and price Megaport at $13.10 per share.
At the current market price of $4.96, some might suggest it is trading at a deep discount to Goldman's price objective.
Structural tailwinds in the cloud-usage and networking-as-a-service (NaaS) space are key drivers of Megaport's growth, Goldman says.
The total market could reach $129 billion for these areas, the broker reckons. Certainly optimistic projections that could bode well for Megaport.
Further, whilst the market has been unkind to Megaport, if it is considered a value share, this could play in well to the case.
That's because value stocks are likely to outperform growth after a slumped period, according to Cliff Asness, CIO at AQR Capital.
Speaking to Goldman Sachs' June macroeconomic research paper Top of Mind, Asness said:
Looking ahead, I'm confident that Value can continue to outperform over a medium-term, say, three year, horizon precisely because the valuation spread between Value and Growth remains incredibly stretched, which would represent a stark break from the post-GFC cycle where Value delivered somewhere between subpar and dismal returns.
Irrespective, the Megaport share price has a long way to run to reach its former closing high of $21.88 reached on 17 November 2021.
