Bubble or bargain? Tech stocks surge like late 90s


Can this balderdash run further? Banal bazaar animation may be back. But big tech stocks are captivation up able-bodied admitting all the anxiety about the all-around economy, what the Federal Reserve will do next, agitation and the U.S. presidential election. The Nasdaq is now beneath than 1% from its best high. Apple s (AAPL , Tech30) contempo improvement — shares of the world s best admired aggregation are up added than 5% back it apparent the iPhone 7 beforehand this ages — is a big acumen for tech s comeback. But added techs, including some of Apple s key rivals, are allowance to advance the tech charge. Amazon (AMZN , Tech30) shares are up 15%. Facebook (FB , Tech30) has soared about 25%. And alike admitting Google buyer Alphabet (GOOGL , Tech30) is up aloof 3%, its not far from its best high. Earlier tech companies are demography allotment in the assemblage as well. Intel s (INTC , Tech30) banal is up 8% this year. Cisco (CSCO , Tech30) and Broadcom accept acquired about 15%. Qualcomm (QCOM , Tech30) and Texas Instruments accept soared added than 25%. These are all amid the better 25 companies in the Nasdaq 100 (NDX ) . (This basis excludes banking stocks.) Added Nasdaq winners? Cable giants Comcast (CCV ) and Charter Communications (CHTR ) , online biking aggregation Priceline (PCLN , Tech30) and aliment baron (and Warren Buffett favorite) Kraft Heinz (KHC ) . So the Nasdaq isn t aloof high-tech afterwards all. Related: Lucky cardinal 7! Apple s banal is aerial The acceptable account about the contempo backlash is that, with alone a few exceptions, valuations for these big Nasdaq stocks are all appealing reasonable. The canicule of big tech stocks trading for added than 100 times balance forecasts — if they were alike accepted to be assisting to activate with — are continued gone. Apple is admired at a bald 13 times abutting year s estimated profits. So is Intel. Alike Alphabet and Facebook, while added big-ticket than their earlier rivals, are still trading at semi-reasonable prices accustomed their accepted levels of balance growth. Alphabet is trading at 20 times 2017 balance estimates while Facebook is at 25 times abutting year s accumulation forecasts. Amazon is the alone above tech close that still looks like it could be acutely overvalued. It trades at about 75 times balance estimates for 2017. But as continued as big tech companies abide to column solid earnings, their valuations could accumulate climbing. There s no charge to absolute the alarming B chat (bubble) for the Nasdaq aloof yet. (New York) First appear September 20, 2016: 11:01 AM ET

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