Even After Big Price Cuts, These Tech Stocks Are No Bargains - Bloomberg

techsooper.blogspot.com

To see why a leveling of tech valuations has the capacity to terrify even staunch stock bulls, consider the hyper-speculative software makers at the center of the recent equity storm.

Those firms have suffered what is by any measure a pummeling in the last few weeks following the hawkish shift by the Federal Reserve. The tech shares lost a third of their value when measured via indexes compiled by Goldman Sachs Group Inc. And yet even with those losses behind them, the group -- a basket of companies for whom profitability has in many cases yet to materialize -- still trades at 16 times sales. That’s almost three times the multiple of the Nasdaq 100 Index.

Adblock test (Why?)