'Magnificent Seven' Dominate S&P 500, But Haunting Echoes Of Dot-Com Bubble Resurface
Portfolio Pulse from Piero Cingari
Seven tech giants, namely Apple, Microsoft, Alphabet, Amazon, Meta Platforms, NVIDIA, and Tesla, have seen their stocks surge by 100% or more year-to-date, outperforming the broader S&P 500 index. The rise is attributed to the transformative power of AI and a decline in the Consumer Price Index. However, concerns are rising about the sustainability of these gains, with the Nasdaq 100's current valuation exceeding peak levels seen during the dot-com bubble. The P/E ratio of the Invesco QQQ Trust ETF stands at 35.02, indicating tech stocks are now 15% more costly than their three-year average and 24% pricier than their five-year average.
September 12, 2023 | 4:10 pm
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POSITIVE IMPACT
Apple's stock has surged by 100% or more year-to-date, outperforming the broader S&P 500 index.
The surge in Apple's stock price is attributed to the transformative power of AI and a decline in the Consumer Price Index. However, concerns are rising about the sustainability of these gains, with tech stocks now more costly than their historical averages.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
The P/E ratio of the Invesco QQQ Trust ETF stands at 35.02, indicating tech stocks are now 15% more costly than their three-year average and 24% pricier than their five-year average.
The high P/E ratio of the Invesco QQQ Trust ETF indicates that tech stocks are now more costly than their historical averages, raising concerns about the sustainability of their gains.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100