Tech Stocks Left Out of Rally Ease Fears a Bubble Is Building
Mar 16, 2024 - bloomberg.com
The article discusses the current state of unprofitable technology companies in the US stock market. Despite the surge in money-losing tech companies in 2020, these companies have experienced a fall this year, indicating a shift in investor focus towards profits from previous booms. The article also highlights the signs of excess in the market, with cryptocurrencies making a strong comeback and Nvidia Corp. seeing a nearly 80% surge since the start of the year.
However, the article suggests that this wave of irrational exuberance sweeping across Wall Street has not reached the speculative corners of the US stock market, particularly unprofitable technology companies. This indicates a potential change in investor sentiment and strategy, focusing more on profitability rather than speculative growth.
Key takeaways:
Money-losing tech companies that surged in 2020 are experiencing a fall this year.
Investors are shifting their focus to profits from previous booms.
Cryptocurrencies are roaring back and Nvidia Corp. has surged nearly 80% since the year began.
Despite the irrational exuberance sweeping across Wall Street, it hasn't trickled down to unprofitable technology companies.
