Punters have been warning about the over-valuation of tech stocks for so long that great fortunes have been made in the interim. Then again, anyone old enough to remember back 20 years will know that tech stocks are not invincible – they can indeed crash. So is the wobble in tech stocks since the middle of February just that – a wobble – or is it the beginning of something bigger? Has the end of the party finally arrived?
Since the middle of February the NASDAQ – the US exchange for tech stocks – has slid by just over eight per cent. Some of the big players – the ‘FAANGs’ — have fared worse. Facebook is down 13 per cent, Amazon is down 14 per cent, Apple down 17 per cent, Netflix 12 per cent, while Alphabet (Google) has managed to avoid the slide. Top of the fallers list is Tesla, which has slid by 31 per cent.
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