No.
Technology stocks' performance measured by the Nasdaq Composite have around 40 % to fall from current levels to around 8 400 points, in my personal opinion.
The technology sector is still overvalued by most valuations metrics.
Many listed, small capitalization, mid capitalization and even large capitalization are loss making or barely profitable.
The interesting thing is that stock market investors seem not to promote the profitable technology stocks, by assigning to them lower Price/Earnings, Price/Sales, Price/Book valuation multiples.
Very interesting, indeed.
The stock market seems to go on and reward growth. Not only that, but stock market participants also seem to reward forecasted growth in the future.
I personally invest in technology stocks, and I understand the reason for the conundrum above.
When a hot technology stock's price goes up, 3 times for example, it does not matter a lot if it falls by 30 %, 40 % or even 50 %. But that is only true, if one has invested in the aforementioned technology stock at or near the bottom of the stocks' price and this is not very easy, to say the least.
A notoriously difficult thing about technology stocks is investing when the stock bottoms out. Yes, if the investor is successful, he or she can make multiples of his or her initial investment. A case in point is Snap Inc, Snapchat application's owner, when its stock price went from 4.99 USD to 83 USD in the space of 3 years. Before that Snap's stock price fell from 27 USD to 4.99 USD.
So, in short, technology stocks' volatility or risk makes it difficult for long-term investing. Timing is here more important.
And if interest rates levels are going up as they have done in the last year or so, technology companies which are mostly making losses and burning cash find it difficult to raise money.
And I forecast the Federal Reserve and the European Central Bank will go on raising their leading rates.
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