Tech Stocks Are Expensive Now. They Might Not Be as Safe as They Look

41
Comment
1

Tech Stocks Are Expensive Now. They Might Not Be as Safe as They Look

marketwatch2023-03-28

Technology stocks have raced higher after a terrible 2022, making them quite expensive. The time for caution has come.The technology-heavy Nasdaq Composite index has gained about 13% this year, ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

MojoStellar
·2023-03-28
Thank you for sharing
Reply
2
Report
Fold Replies
- 老赌神:
  [惊讶]
  2023-03-30
  Reply
  Report
ILSL
·2023-03-28
OK
Reply
1
Report
ck6ng
·2023-03-28
👍
Reply
1
Report

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2322928222?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-03-28 13:19","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2322928222","market":"us","top_or_hot":-1,"title":"Tech Stocks Are Expensive Now. They Might Not Be as Safe as They Look","media":"marketwatch","content":"<div>\n<p>Technology stocks have raced higher after a terrible 2022, making them quite expensive. The time for caution has come.The technology-heavy Nasdaq Composite  index has gained about 13% this year, ...</p>\n\n<a href=\"https://www.marketwatch.com/articles/tech-stocks-expensive-sp-500-risk-ec590be9?mod=newsviewer_click\">Source Link</a>\n\n</div>\n","source":"mwatch_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tech Stocks Are Expensive Now. They Might Not Be as Safe as They Look</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTech Stocks Are Expensive Now. They Might Not Be as Safe as They Look\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-03-28 13:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/articles/tech-stocks-expensive-sp-500-risk-ec590be9?mod=newsviewer_click><strong>marketwatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Technology stocks have raced higher after a terrible 2022, making them quite expensive. The time for caution has come.The technology-heavy Nasdaq Composite  index has gained about 13% this year, ...</p>\n\n<a href=\"https://www.marketwatch.com/articles/tech-stocks-expensive-sp-500-risk-ec590be9?mod=newsviewer_click\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PSQ","symbol_name":"纳指反向ETF","start_time":0,"source_url":"https://www.marketwatch.com/articles/tech-stocks-expensive-sp-500-risk-ec590be9?mod=newsviewer_click","article_id":"2322928222","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2322928222","pubTimestamp":1679980793,"sourceInfo":{"source_id":"mwatch_stock","name":"Market Watch"},"weMediaInfo":null,"summary":"Technology stocks have raced higher after a terrible 2022, making them quite expensive. The time for","collect":0,"end_time":0,"defaultTopTitle":"marketwatch.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"513500":"标普500ETF","PSQ":"纳指反向ETF","TQQQ":"纳指三倍做多ETF","QLD":"纳指两倍做多ETF","IVV":"标普500指数ETF","QQQ":"纳指100ETF","BK4581":"高盛持仓","BK4504":"桥水持仓","SSO":"两倍做多标普500ETF",".IXIC":"NASDAQ Composite","SQQQ":"纳指三倍做空ETF","SDS":"两倍做空标普500ETF","OEX":"标普100","SH":"标普500反向ETF",".SPX":"S&P 500 Index","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","SPXU":"三倍做空标普500ETF","QID":"纳指两倍做空ETF","UPRO":"三倍做多标普500ETF","BK4559":"巴菲特持仓","SPY":"标普500ETF","BK4588":"碎股","OEF":"标普100指数ETF-iShares","BK4550":"红杉资本持仓"},"translate_title":"科技股现在很贵。他们可能并不像看上去那么安全","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"513500":1,"OEF":1,"UPRO":1,"TQQQ":1,"SSO":1,"SQQQ":1,"SPY":1,"SPXU":1,"SH":1,"SDS":1,"QQQ":1,"QLD":1,"QID":1,"PSQ":1,"OEX":1,".IXIC":1,"IVV":1,"NQmain":1,"MNQmain":1,"ESmain":1,".SPX":1},"content_text":"Technology stocks have raced higher after a terrible 2022, making them quite expensive. The time for caution has come.The technology-heavy Nasdaq Composite  index has gained about 13% this year, compared with a gain of less than 4% for the S&P 500.  Concern about banks, rather than spectacular results from tech companies, is the main reason.Fear that more banks will fail, and that obtaining credit will be harder, is making investors worry about economic growth and keeping a lid on broader stock market gains. A weaker economy would mean less inflation, allowing the Federal Reserve to ease back on raising interest, which has sent long-dated bond yields lower, boosting the value of future profits.That matters for tech because investors buy those growth stocks mainly for the earnings the companies are expected to deliver years from now. Lower rates boost the current discounted value of those profits, meaning investors may be willing to pay more.At the same time, tech companies’ relatively brisk growth makes profits a bit less sensitive to changes in demand across the broader economy.The strong start to the year for tech is a reversal from 2022, when the Nasdaq fell 32% as the Fed raised rates to fight inflation, sending bond yields higher.But given the recent rally, buying tech stocks may not be so safe at this point.The most glaring reason is that they now look fairly expensive. The Nasdaq’s aggregate forward price/earnings ratio is about 25.4 times, about 44% above the S&P 500’s 17.6 times, according to FactSet. The Nasdaq usually trades at a premium, but this is a particularly wide valuation gap.It isn’t far from that seen in August 2020, the peak of the pandemic-era rally, when the Nasdaq traded at a 48% premium to the S&P 500. For context, the Nasdaq has traded at a premium of less than 20% at times during the past decade.To be sure, the Nasdaq’s so-called PEG ratio, a measure that divides the price/earnings multiple by the rate of earnings growth so that the valuation can take into account how fast profits are growing, is relatively appealing. With a price/earnings ratio of 25.4 times and aggregate per-share profits expected to grow at 17% annually for the next three years, the figure comes out to about 1.5 times.That’s fairly low, considering that the S&P 500 trades at a PEG ratio of just over two times. At current levels, investors are paying less for the earnings growth the Nasdaq will deliver than for the anticipated profit growth for the S&P 500.A counterargument is that Nasdaq’s PEG is only as low as it looks if the earnings growth is actually as high as Wall Street expects it to be. Part of the strong expected growth for tech comes from a just over 20% increase in EPS for 2024 after what could be a tough 2023. It would decline to 15% by 2025.The growth rates of many tech trends, such as e-commerce, digital payments, entertainment streaming, and even cloud services, are still high, but decelerating.“These mega cap [tech] companies are subject to the law of large numbers,” said Doug Peta, chief U.S. investment strategist at BCA Research. “It’s difficult to keep growing at a fast rate.”Even if tech remains particularly expensive, the short term could bring more of a rally. Banking’s problems should drag on the stock market for some time, especially if evidence builds that difficulty in borrowing is hurting the economy.That would drive more money into tech names. “One thing that helps growth’s [tech stocks’] cause is that the worries for the broader market have emanated from worries in one particular component of the market, the banks,” Peta said.The problem is that while buying now is a bet that the tech trade has a little more juice in it for the near term, the sector looks way less attractive now than it did a few months ago. It is far more vulnerable to poor performance.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[{"id":9941368546,"gmtCreate":1679986468185,"gmtModify":1679986471500,"author":{"id":"4098098188330620","authorId":"4098098188330620","name":"MojoStellar","avatar":"https://static.tigerbbs.com/9e757a91c3f486e5fb2bd8b91f998420","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":5,"crmLevelSwitch":1},"htmlText":"Thank you for sharing&nbsp;","listText":"Thank you for sharing&nbsp;","text":"Thank you for sharing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9941368546","repostId":2322928222,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106171470,"gmtCreate":1680156962033,"gmtModify":1680156965122,"authorId":4096959133980430,"author":{"id":4096959133980430,"authorId":4096959133980430,"name":"老赌神","avatar":"https://static.tigerbbs.com/14357d6e06eb4acf988efbe59084f465","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9941368546,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">[惊讶]</span>","text":"<span class=\"s1\">[惊讶]</span>","html":"<span class=\"s1\">[惊讶]</span>"}],"langContent":"EN"},{"id":9941360393,"gmtCreate":1679983315613,"gmtModify":1679985381290,"author":{"id":"4121237375795032","authorId":"4121237375795032","name":"ILSL","avatar":"https://community-static.tradeup.com/news/68f1e3c52d7d67dffe9c3c8d6cff8d40","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":2,"crmLevelSwitch":1},"htmlText":"OK","listText":"OK","text":"OK","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9941360393","repostId":2322928222,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9941387497,"gmtCreate":1679983239819,"gmtModify":1679983243332,"author":{"id":"3567930705356651","authorId":"3567930705356651","name":"ck6ng","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"👍","listText":"👍","text":"👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9941387497","repostId":2322928222,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":41,"commentSize":0,"repostSize":3,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}