You can hear the whispers. Technology companies cost far too much. The five FAANG stocks drive the entire stock market (Facebook, Apple, Amazon.com, Netflix, [Alphabet] Google). Investors have become obsessed with “unicorns”--privately held technology firms that are valued at more than $1 billion. Some openly ask the question: Has the New Era returned?
This article’s headline reveals my belief. (No use being coy; as my former editor liked to say, “Tell them up front what you wish to say. You’re writing an investment article, not a suspense novel.”) I do not believe that the comparison between the current technology-stock marketplace and the overheated period of the late '90s is warranted.
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John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.