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.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.