Are tech stocks now good value?

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This year Amazon, Netflix and Meta have shed a whopping 48%, 58% and 70% of their value. Tech stocks are certainly on sale. But are they a good deal?

Save time by listening to our audio articles as you multitaskThey are always on the minds of investors. “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down,” Warren Buffett, a celebrated investor, once joked. Most share prices have fallen this year—the500 index of American stocks has shed more than a fifth of its value—but the prices of technology stocks have plunged most precipitously.

The original value investor was Benjamin Graham, an academic and author, in whose footsteps Mr Buffett treads. And Graham relied most of all on two measures: the ratio of share price to earnings, which compares the market value of a firm with its profits; and price to book value, which compares a share price to the value of a company’s assets, such as property, equipment and inventories.

These sky-high valuations partly reflected tech companies’ characteristics. Firms from Alphabet to Zoom tend to have relatively few physical assets that are captured by book value and many intangible ones—such as software and human capital—that are typically not included. They also tended to be fast growers, meaning that measuring their price against present earnings risked understating future profits.

 

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Nope. The Engagement in mass manipulation is going to cost

Long run yes

Dollar cost averaging. Get started. (Meta is massive gamble though)

Yes...nice sale

Maybe a right time to rebound now or wait little more

I’ll take Amazon the other 2 suspect

I see huge gains coming

Good

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