Technology stocks are likely overvalued after massive run-ups, according to Aswath Damodaran. The New York University Stern School of Business finance professor said tech giants including Apple , Microsoft and Alphabet have seen such large gains so far in 2023, shares are potentially in the middle of a "boom and bust" period.
"You don't get a 40% run-up on companies of this size without expecting some degree of overvaluation." Shares of Apple and Microsoft have both gained nearly 38% each from the start of the year, while Alphabet and Nvidia have soared 53% and 216%, respectively. That wasn't always the case, Damodaran added. As recently as January, some of the bigger players in the tech sector were skewed to an undervaluation, he said.
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Big Tech stocks drag Wall Street down againWall Street is sinking on worries a too-warm economy will push the Federal Reserve to keep interest rates higher for longer.
Source: latimes - 🏆 11. / 82 Read more »
Stock Market Today: Dow Drops More Than 200 Points; Tech Stocks Drag Markets LowerLive coverage of what's moving stocks and other markets, including the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite
Source: WSJ - 🏆 98. / 63 Read more »