You know it's bad when... even Wall Street's biggest tech analysts are getting nervous about the market's lofty levels.
"Risk is increasing in tech, especially with high priced stocks," warned Toni Sacconaghi, AB Bernstein’s senior technology research analyst, in a note this week, pointing out that tech companies are getting way too expensive as the earnings picture continues to deteriorate.
Tech - Sector - Year - Highs - Market
The tech sector is now trading at 12 year highs, dramatically above the broader market.
As CNBC reports, this rapid multiple expansion, which is the most pronounced this year, has reached a worrisome degree given earnings are expected to have a "startling" decline over the next 12 months, according to Sacconaghi.
Part - Tech - Challenge - Tech - Earnings
“Part of tech’s challenge is that it is comping against a tough 2018. Tech’s earnings lagged the broader market last year, as tax reform more favorably impacted other...
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