Tech and growth stock valuations under scrutiny, potential market reversal warned about.
From Nasdaq:
Tech and growth stock valuations come under scrutiny as the “Magnificent Seven” trade at an average of 33 times expected earnings, while the S&P 500 is at 21. Tesla struggles with a 35% drop, Apple loses market cap dominance, and Nvidia soars with AI optimism. Analysts warn about potential market reversal.
Investors mull over the impact of AI on valuations as the tech giants face mixed fortunes. Despite robust earnings, concerns arise about sustained growth. Nvidia leads in AI computing, but investors question if valuations are sustainable. Markets await the Fed meeting and Nvidia’s developer conference for potential market shifts.
Read more at Nasdaq: Wall St Week Ahead-Fracturing ‘Magnificent Seven’ trade puts spotlight on megacap valuations