Wednesday, October 20, 2021

These 4 Tech Stocks Are Getting Way Too Expensive

Must read

Stock Markets43 minutes ago (Sep 24, 2021 03:30PM ET)

(C) Reuters. These 4 Tech Stocks Are Getting Way Too Expensive

Although tech stocks have the most long-term growth prospects with surging demand and rising investments worldwide, certain tech stocks have reached price levels that don’t justify their current fundamentals and growth potential. Snowflake (SNOW), Cloudflare (NYSE:NET), Carvana (CVNA), and (BILL) look way too expensive at their current price levels and could witness a pullback in the near term.Although the major stock indices shrugged off concerns over the Evergrande debt crisis, the market should remain volatile as the Fed looks to taper, case counts remain stubbornly high, and the economy is decelerating.

Along with a low-interest-rate environment, the rising demand for technology products and solutions amid ongoing digitalization and continued innovations should keep driving the sector’s growth. Tech spending in the US is expected to grow 6.7% in 2022.

However, a bullish backdrop has led to certain tech stocks reaching price levels way beyond their intrinsic values. Considering the fundamentals and growth prospects, tech stocks Snowflake Inc. (SNOW), Cloudflare, Inc. (NET), Carvana Co. (NYSE:CVNA), and Holdings, Inc. (NYSE:BILL) look way too expensive at their current price levels. So, these stocks could witness a pullback amid the market volatility.

Continue reading on StockNews

These 4 Tech Stocks Are Getting Way Too Expensive

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Latest article

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.