Q2 Saw Tech Turbulence as Workers Sheltered at Home
What we expect from July.
|Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
Brian Colello: Similar to the broader market, technology stocks have been on a wild ride over the past six months. As of June 5, the median technology stock is about 8% overvalued, in our opinion. Now, at the start of 2020, prior to the COVID-19 pandemic, the median tech stock was about 11% overvalued, and valuations were as frothy as we've seen since 2007. Now, with the sell-off at the end of March, at the depths of the COVID sell-off, tech was 20% undervalued. So, the sector has really rallied back to again now be 8% overvalued.
Brian Colello does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.