Mark Zuckerberg, founder along with also chief executive officer of Facebook Inc., smiles during a news conference at the company’s headquarters in Palo Alto, California, U.S., on Wednesday, Oct. 6, 2010.
Tech is usually a no brainer for investors. however a simple investment theme for the sector is usually being badly executed.
Investors are too narrow in their focus, chasing Nasdaq along with also FANG (Facebook, Amazon, Netflix along with also Google) stocks similar to how investors often play emerging markets in a simple fashion.
Investor sentiment is usually cautious, except when the item comes to tech stocks — even a scandal doesn’t hurt for long. The scale of the Facebook data privacy issue is usually still being uncovered with completely new revelations about information shared with Huawei, a Chinese company of which some American politicians along with also regulators want banned by government contracts because of national security concerns. Facebook stock continues to trade around records.
Apple recently got handsomely rewarded for creating sense of tech disruption, its market value soaring close to a trillion dollars as the item embedded all of the themes — big data, artificial intelligence (AI), augmented reality (AR), internet of things (IOT) along with also enhanced security — under the hood of its iPhone.
The problem is usually of which the market right now considers tech stocks a defensive play. How did a growth sector, trading around eye-watering valuations thanks to crowding, suddenly become defensive? Has everyone forgotten the item also sold-off within the February meltdown along with also again in March?