If you are looking at any price related ratio, they will be overvalued. Techology stocks would typically sell in high multiples compared to the average because of their expected higher earnings growth. This is perhaps why I do not use the ratios for technology stocks. A good example would be amazon. From years ago till now, people have always try to justify its price was overvalued with all those ratio, but just take a look where it is now today. Therefore, if you are investing in technology related companies, you may want to focus on its moat, competitive advantage, relevancy, business model, leadership.
Above mentioned are for individual stock. For QQQ and ARKK, i can't say the same because there are other companies in the index itself even though their performance is mostly driven by technology related stock performance. So gotta do your own due diligence for the rest.
If you are looking at any price related ratio, they will be overvalued. Techology stocks would typically sell in high multiples compared to the average because of their expected higher earnings growth. This is perhaps why I do not use the ratios for technology stocks. A good example would be amazon. From years ago till now, people have always try to justify its price was overvalued with all those ratio, but just take a look where it is now today. Therefore, if you are investing in technology related companies, you may want to focus on its moat, competitive advantage, relevancy, business model, leadership.
Above mentioned are for individual stock. For QQQ and ARKK, i can't say the same because there are other companies in the index itself even though their performance is mostly driven by technology related stock performance. So gotta do your own due diligence for the rest.