Megacap Tech Rebound Reignites Fear of ‘Extreme’ Valuations
- Date: 13-Jul-2021
- Source: Yahoo News
- Sector:Technology
- Country:Middle East
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.