Tech Stocks Right Now are Not Over-Valued

Right now, there is a lot of fear when it comes to stock market bubbles. There is a huge risk that they are going to burst unexpectedly but they only pose as a big risk if there is no growth flow or earnings flow to support the bubble in general.  When you look at things, you will soon see that this is not the case with the tech sector. Right now, it would seem that there is no bubble. Indeed, when you look at growth, you will soon see that there are way more reasons to be confident about tech.

Stonehage Fleming Investment Management

Stonehage Fleming Investment Management are expected to see a whopping 18% increase in their earnings. When you take into account the fact that they work in the tech sector, you will soon see that this is fantastic news to say the least and that you would never normally see this kind of increase in the construction sector. If you divide this project up into various earnings as a whole, you will soon see that you can get a price to earnings growth or a PEG ratio that tops 3.1. On top of this, there are very strong arguments that all show that tech is going to have a really big growth story. Of course, when you look at someone like the technologist Tej Kohli, you will see that he has invested millions in tech to get where he is today and this is a growing trend across the entire industry; especially in the technology sectors.

Tech Stocks Right Now are Not Over-Valued

The Regulation of Tech

When you look at the regulation of tech, you will soon see that there will be a blot in the landscape. What we are seeing is that legal action is being taken against companies and tactics are also being deemed as being anticompetitive. Look at Google for example, they are a company and they have 90% market share. A lot of this comes down to the fact that they have an agreement with Apple, as they get to be the search engine of choice for all of their phones and tablets. Right now, it seems somewhat unlikely that the regulators are going to take steps to address this kind of agreement.

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Google and the Future of Tech

Right now, it would appear that Google isn’t going to lose out much in this scenario. It’s hard to see any other search engine turning to use the same numbers. What kind of regulators are unbundling the same behemoths into smaller entities? In the case of Amazon, you will soon see that the sums of split parts are probably going to be worth more than the company’s valuation in general. This doesn’t appear to be much of a concern either.

Earnings and even cash flow from the market leaders look to be growing and as they continue to support the good health of the business sector, it would appear that things are going to be growing quite a lot for years to come.

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