Fabulous1711
2022-09-11

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@A.111：
Big Tech Stocks Are Still Expensive. Why That's Important For the Market Big Tech stocks are still expensive, despite all the market's down times this year. And that's key for the $S&P 500 index(.SPX.US)$. Now, the giants -- $Apple(AAPL.US)$ and $Alphabet-A(GOOGL.US)$ are two examples -- haven't walked away untouched. They've gotten caught in the selloff just like the rest of the S&P 500, which is down about 16% from its early January all-time high. The market just hasn't been able to shake off two big worries -- the Russia-Ukraine war and a recession triggered by the Federal Reserve, desperate to bring down inflation with higher interest rates. Still, comparatively speaking, Big Tech is expensive. Those names are simply more richly valued than the tried-and-trues of other industries -- $Ford Motor(F.US)$, for example, or $Pfizer(PFE.US)$. The key metric is the earnings multiple. Apple and Alphabet -- along with $Microsoft(MSFT.US)$, $Amazon(AMZN.US)$, $Meta Platforms(META.US)$, $Tesla(TSLA.US)$, and $NVIDIA(NVDA.US)$ -- trade at an average forward earnings multiple of about 38 times. And that's just below the sub-17 times aggregate multiple for the S&P 500. Big Tech has been able to pull a rabbit out the hat because of its bright future: relatively fast profit growth.
Big Tech Stocks Are Still Expensive. Why That's Important For the Market Big Tech stocks are still expensive, despite all the market's down times this year. And that's key for the $S&P 500 index(.SPX.US)$. Now, the giants -- $Apple(AAPL.US)$ and $Alphabet-A(GOOGL.US)$ are two examples -- haven't walked away untouched. They've gotten caught in the selloff just like the rest of the S&P 500, which is down about 16% from its early January all-time high. The market just hasn't been able to shake off two big worries -- the Russia-Ukraine war and a recession triggered by the Federal Reserve, desperate to bring down inflation with higher interest rates. Still, comparatively speaking, Big Tech is expensive. Those names are simply more richly valued than the tried-and-trues of other industries -- $Ford Motor(F.US)$, for example, or $Pfizer(PFE.US)$. The key metric is the earnings multiple. Apple and Alphabet -- along with $Microsoft(MSFT.US)$, $Amazon(AMZN.US)$, $Meta Platforms(META.US)$, $Tesla(TSLA.US)$, and $NVIDIA(NVDA.US)$ -- trade at an average forward earnings multiple of about 38 times. And that's just below the sub-17 times aggregate multiple for the S&P 500. Big Tech has been able to pull a rabbit out the hat because of its bright future: relatively fast profit growth.

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.

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