While earnings multiples on tech stocks have jumped this year, investors should not expect another tech bubble on par with what was seen in 2000. In fact, the largest tech stocks today are far less pricey than their counterparts were in 2000.
“The tech sector posted double-digit earnings growth in the last two quarters, and it boasts the highest percentage of firms exceeding earnings expectations in the past four quarters among the 11 Global Industry Classification Standard (GICS) sectors,” said State Street Global Advisors (SSgA) in a note out last week.
Since the start of the third quarter, investors have allocated $108.4 million to XLK. Year-to-date, the benchmark technology ETF has seen inflows of nearly $337 million.
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Tom Lydon’s clients own shares of Apple and Facebook.