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Quarter-End Insights

Technology: Data Security and Privacy Remain on the Forefront

Overall, we view the Tech sector as slightly overvalued.

Brian Colello
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  • Overall, we view the tech sector as modestly overvalued at a market cap weighted price/fair value of 1.02.
  • Enterprise cloud computing remains the most important story in tech.
  • Data security and privacy remain at the forefront of technology.
  • We still see a hot M&A sector, particularly in semis and software.

Overall, we view the Tech sector as slightly overvalued today at a market cap weighted price/fair value of 1.02 as of May 31, versus 1.05 as of the end of February and 1.08 at the end of November. The Nasdaq index has risen about 4% from mid-March to mid-June and is up about 11% year to date in 2018 as of mid-June.

Brian Colello does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.