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Re: Technology Companies overbought?
Posted: Fri Mar 13 2020 12:06pm
by Sarah
Re: Technology Companies overbought?
Posted: Fri Mar 13 2020 2:06pm
by pabenny
planteria wrote: ↑Fri Mar 13 2020 11:02am
maybe.. but i think they'll be significantly higher in, for example, a years time than they are today.
My sense is that market valuations of many tech businesses are driven by fomo and are not justified by the underlying fundamentals. The current sharp falls may cause a reassessment of value and whilst some tech stocks will bounce back over time, I think prices will be less frothy.
That said, I'm not an active investor, so I don't really care much about the performance of individual shares.
Re: Technology Companies overbought?
Posted: Fri Mar 13 2020 2:19pm
by BeautifulSunshine
pabenny wrote: ↑Fri Mar 13 2020 2:06pm
planteria wrote: ↑Fri Mar 13 2020 11:02am
maybe.. but i think they'll be significantly higher in, for example, a years time than they are today.
My sense is that market valuations of many tech businesses are driven by fomo and are not justified by the underlying fundamentals. The current sharp falls may cause a reassessment of value and whilst some tech stocks will bounce back over time, I think prices will be less frothy.
That said, I'm not an active investor, so I don't really care much about the performance of individual shares.
It does have an effect on your life as you most likely have a pension and they will very probably be invested, at whatever percentage, in technology shares.
Re: Technology Companies overbought?
Posted: Fri Mar 13 2020 4:25pm
by pabenny
Of course. That's why I said don't care much rather than don't care at all.
Re: Technology Companies overbought?
Posted: Sat Mar 14 2020 7:52am
by planteria
pabenny wrote: ↑Fri Mar 13 2020 2:06pm
My sense is that market valuations of many tech businesses are driven by fomo and are not justified by the underlying fundamentals. The current sharp falls may cause a reassessment of value and whilst some tech stocks will bounce back over time, I think prices will be less frothy.
interesting points.. i'm broadly happy in that Amazon continue to grow as a retailer, with other branches to the business too, and Alphabet dominates search, video uploads and wil continue to become a more important method to reach customers. i do think that the Coronavirus volatility is set to shake out weaker companies: picking those that will bounce back from being oversold, along with in theory shorting the ones who could drop much lower, represent a real opportunity.