Megacap Tech Rebound Reignites Fear of ‘Extreme’ Valuations

Megacap Tech Rebound Reignites Fear of ‘Extreme’ Valuations

(Bloomberg) -- Major U.S. technology and internet stocks have returned to favor on Wall Street, renewing concerns about valuations as investors rotate back into growth-oriented names amid a decline in Treasury bond yields.

With the S&P 500 information technology index up about 16% this year, Morgan Stanley Wealth Management sees valuations as “extreme,” noting that the sector’s price-to-sales ratio of 7.4 has risen to levels last seen during the dot-com bubble in 2000.