facebookAre tech stocks overvalued? - Seedly

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Isaac Chan

13 Mar 2019

Business at NUS

Personally, I think that they are overvalued, based on the hype surrounding these companies, and the fact that the growth potential is based largely on long term tech trends and business opportunities that seem less tangible.

There were several predictions that did not come as true as we hope to, such as the onset of high usage of virtual reality, internet of things and self-driving cars. I think much of these trends were over-hyped based on very strong growth in the tech industry previously, but they seemed over-estimated. Some even compare that to the dot-com bubble.

I also feel that it is harder for the market to understand the value of the stocks as well, since technology has a higher knowledge of barrier to entry compared to F&B, retail etc.

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