Are tech stocks worth their lofty valuations?

SourceThe National
SectorFinancial Markets
CountryMiddle east

Entering this year, we fully expected that strong secular technology growth themes such as payment digitisation, internet transformation (everything available on demand) and next generation infrastructure, would continue to gain traction. However, we would not have predicted the significant acceleration of these trends in 2020. The digital transformation of our lives was mandated by the measures put in place to tackle Covid-19, at the same time when central banks and governments unleashed funding and policy support at levels unseen since the 2008 global financial crisis. As the chief executive of online education provider Chegg said: “…a crisis often accelerates the inevitable…”.

We see strong more...