Computer and software stocks account for more than a fifth of the value of the S&P 500 – a near-15-year high. Strong revenues make a replay of the 2000 dot-com crash unlikely.
A Bloomberg News report delivers the following insights:
Since 2015, investors have favored tech companies chasing revenues instead of user growth, which helps to differentiate today’s gains in the sector from the rally that ended with a crash in 2000.
“It’s healthy growth,” Bloomberg quoted Rich Weiss, a Los Angeles-based senior portfolio manager at American Century Investments, as saying. “I don’t believe we need to worry about a tech bubble here or in the near future.”
— TechPORTFOLIO (@TechPORTFOLIO) May 13, 2016
— TechPORTFOLIO (@TechPORTFOLIO) May 8, 2016