U.S. technology companies this year’s annual profit growth of 22%, although not bad performance, but still lower than the financial, industrial and raw materials industries, plus technology stocks are facing doubts that the stock price is too high, may lead to reduced attractiveness, so that this year’s outlook overshadowed.
Technology stocks last year’s rise proud of the S&P 500 index of other stocks, but this year’s performance is not as good as the financial and industrial stocks that are considered better growth prospects.
Bloomberg industry research data show that the technology industry in the first quarter revenue growth is expected to grow 16%, for the U.S. S&P 500 index of all types of stocks, but after that is not so optimistic, the fourth quarter of this year, revenue may only grow 5.6%.
In terms of profit growth, the attractiveness of technology stocks is even lower than other classes of stocks. Boheh Capital Partners investment chief Forrest said, if technology stocks want to return to the road to rise, they must provide growth sources, when to grow and other positive issues.
Short-side sources believe that even if the technology industry’s earnings test is better than expected, it is still not enough to support the price level which is at the peak in many years. The Nasdaq 100 index is currently at 41 times the cost-benefit ratio, the highest since 2004.
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