{"id":44327,"date":"2020-10-07T13:34:00","date_gmt":"2020-10-07T13:34:00","guid":{"rendered":"https:\/\/wp2.inovestor.com\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/"},"modified":"2020-10-07T13:34:00","modified_gmt":"2020-10-07T13:34:00","slug":"signs-of-elevated-risk-in-lofty-tech-stock-valuations","status":"publish","type":"post","link":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/","title":{"rendered":"Signs of Elevated Risk in Lofty Tech Stock Valuations"},"content":{"rendered":"

What are we looking for?<\/p>\n

<\/b>The tech rally shouldn\u2019t be a surprise considering this year\u2019s work-from-home environment. The health and safety measures put in place by government authorities around COVID-19 forced consumers to change their habits to include more tech products in their lifestyle. But do tech stocks justify their lofty valuations?<\/p>\n

For perspective, we compare today\u2019s results with a\u00a0similar screen of tech stocks<\/a>\u00a0we did two years ago (tgam.ca\/IT-Inovestor<\/a>).<\/p>\n

The screen<\/p>\n

<\/b>Here is a link<\/a> for our screener<\/em><\/p>\n

We screened U.S. tech companies focusing on the following criteria:<\/p>\n

\u00b7Positive 12-month change in the economic value-added (EVA) metric \u2013 a positive figure shows us that the company\u2019s profits are increasing at a faster and greater pace than the costs of capital. The EVA gives us a sense of how much value this stock is adding for shareholders and is calculated by taking the net operating profit after tax and subtracting the capital expense;<\/p>\n

\u00b7Positive EVA and EVA growth on a per-share basis over 12 months;<\/p>\n

\u00b7Economic performance index (EPI) \u2013 the ratio of return on capital to cost of capital \u2013 must be greater than one;<\/p>\n

\u00b7Average five-year return on capital must be greater than 10 per cent and the 12-month change in return on capital must be positive (not shown);<\/p>\n

\u00b7Future growth value\/market value (FGV\/MV) and the 12-month change in FGV. The FGV\/MV ratio represents the proportion of the market value of the company that is made up of future growth expectations rather than the actual profit generated. The higher the percentage, the higher the baked-in premium for expected growth and the higher the risk;<\/p>\n

\u00b7Beta \u2013 this gives us an idea of how closely the company mimics the market\u2019s fluctuations. A beta of less than one would indicate the stock is less volatile than the market at large.<\/p>\n

For informational purposes, we have also included recent stock price, dividend yield and one-year return (as of last month\u2019s end). Please note that some ratios may be reported at end-of-previous quarter.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
TICKER<\/td>\nCompany<\/td>\nRECENT PRICE ($)<\/td>\nMKT CAP ($MIL.)<\/td>\n12M EVA CHG.<\/td>\nEVA\/S Ch. 12M<\/td>\nEVA per Share<\/td>\nEPI<\/td>\nBeta<\/td>\nFGV Ch. 12M<\/td>\nDIV. YIELD (%)<\/td>\n1YR PRICE RTN.(%)<\/td>\nFGV ($M)<\/td>\nROC (Avg 5 Y)<\/td>\nFGV \/ MV<\/td>\n<\/tr>\n
ZM-Q<\/td>\nZoom Video Communications, I<\/td>\n482.23<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 136,191<\/td>\nN\/A<\/td>\nN\/A<\/td>\n0.81<\/td>\n3.8<\/td>\n0.5<\/td>\n78.7<\/td>\n0.0<\/td>\n526.4<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 133,352<\/td>\n12.4<\/td>\n97.9%<\/td>\n<\/tr>\n
VEEV-N<\/td>\nVeeva Systems Inc Class A<\/td>\n275.56<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 41,798<\/td>\n6.7<\/td>\n0.2<\/td>\n0.82<\/td>\n1.6<\/td>\n0.9<\/td>\n38.3<\/td>\n0.0<\/td>\n80.6<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 38,458<\/td>\n15.1<\/td>\n92.0%<\/td>\n<\/tr>\n
MSCI-N<\/td>\nMsci Inc. Class A<\/td>\n348.16<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 29,308<\/td>\n1.0<\/td>\n0.1<\/td>\n5.54<\/td>\n2.4<\/td>\n1.0<\/td>\n25.4<\/td>\n0.9<\/td>\n57.7<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 24,021<\/td>\n18.7<\/td>\n82.0%<\/td>\n<\/tr>\n
ADBE-Q<\/td>\nAdobe Inc.<\/td>\n478.99<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 232,045<\/td>\n35.8<\/td>\n1.8<\/td>\n5.29<\/td>\n2.4<\/td>\n0.8<\/td>\n32.7<\/td>\n0.0<\/td>\n73.0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 187,498<\/td>\n17.0<\/td>\n80.8%<\/td>\n<\/tr>\n
TYL-N<\/td>\nTyler Technologies, Inc.<\/td>\n350.72<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 14,302<\/td>\n14.4<\/td>\n0.4<\/td>\n2.59<\/td>\n1.5<\/td>\n0.7<\/td>\n36.6<\/td>\n0.0<\/td>\n34.8<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 11,158<\/td>\n14.8<\/td>\n78.0%<\/td>\n<\/tr>\n
MSFT-Q<\/td>\nMicrosoft Corporation<\/td>\n206.19<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,580,000<\/td>\n30.0<\/td>\n0.7<\/td>\n2.89<\/td>\n1.9<\/td>\n0.9<\/td>\n25.9<\/td>\n1.1<\/td>\n50.4<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,149,583<\/td>\n13.3<\/td>\n72.8%<\/td>\n<\/tr>\n
CDNS-Q<\/td>\nCadence Design Systems, Inc.<\/td>\n105.32<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 29,876<\/td>\n161.3<\/td>\n1.8<\/td>\n2.21<\/td>\n1.9<\/td>\n1.0<\/td>\n11.4<\/td>\n0.0<\/td>\n60.6<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 19,209<\/td>\n12.2<\/td>\n64.3%<\/td>\n<\/tr>\n
JKHY-Q<\/td>\nJack Henry & Associates, Inc<\/td>\n161.56<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12,454<\/td>\n11.2<\/td>\n0.2<\/td>\n2.90<\/td>\n2.1<\/td>\n0.9<\/td>\n13.6<\/td>\n1.1<\/td>\n11.6<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,933<\/td>\n21.5<\/td>\n63.7%<\/td>\n<\/tr>\n
UI-N<\/td>\nUbiquiti Inc.<\/td>\n165.26<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 10,998<\/td>\n72.9<\/td>\n1.7<\/td>\n5.26<\/td>\n5.2<\/td>\n0.9<\/td>\n4.9<\/td>\n1.0<\/td>\n39.8<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,727<\/td>\n34.8<\/td>\n61.2%<\/td>\n<\/tr>\n
LOGI-Q<\/td>\nLogitech International S.a.<\/td>\n77.78<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 13,558<\/td>\n194.5<\/td>\n1.6<\/td>\n2.16<\/td>\n2.8<\/td>\n0.5<\/td>\n13.5<\/td>\n1.1<\/td>\n90.8<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,155<\/td>\n13.4<\/td>\n45.4%<\/td>\n<\/tr>\n
GRMN-Q<\/td>\nGarmin Ltd.<\/td>\n94.93<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 18,398<\/td>\n79.1<\/td>\n0.8<\/td>\n2.52<\/td>\n1.8<\/td>\n0.9<\/td>\n6.3<\/td>\n2.6<\/td>\n12.2<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,649<\/td>\n14.4<\/td>\n41.6%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

More about Inovestor<\/b><\/p>\n

Inovestor for Advisors<\/a>\u00a0is a fundamental-analysis research platform specializing in the economic value-added (EVA) approach. With Inovestor, advisers can quickly identify attractive investment opportunities, outsource their stock-picking by using model portfolios, and easily communicate investment decisions with clients through client-friendly reports.In addition, Inovestor allows users to create personalized filters, build custom portfolios and carry out in-depth analysis on more than 13,000 companies (Canadian and U.S. stocks and American depositary receipts).<\/i><\/p>\n

What we found<\/b><\/p>\n

The current market environment for tech stocks is more challenging than in late 2018: We see higher valuations and decreasing EVA per share growth compared with our\u00a0previous screen<\/a>.\u00a0<\/b>More companies show an extreme FGV\/MV, signalling elevated risk, and the average EVA growth is 91 per cent, compared with 146 per cent two years ago.<\/p>\n

Zoom Video Communications Inc.<\/b>\u00a0has been one of the big winners during this upheaval. The communications technology company certainly has a good EPI, while its three-month sales growth (not shown) is an incredible 190.4 per cent. That said, its EVA per share of 81 US cents for a stock trading in the US$480 range definitely doesn\u2019t support the current valuation.<\/p>\n

Computer software company\u00a0Adobe Inc.<\/b>\u00a0is one of two names on this list that made our screen two years ago (the other was Jack Henry & Associates). Adobe\u2019s valuation based on the FGV\/MV is lower than in 2018 (80.8 vs. 84.5). The company also has the second-highest 12-month change in EVA per share on our list. This indicates a strong improvement of its profitability. In this case, the valuation can be justified by strong financial performance and doesn\u2019t seem disconnected with its fundamentals based on historical data.<\/p>\n

Investors are advised to do further research before investing in any of the companies shown here.<\/p>\n

For more details about these tech stocks, please subscribe the Inovestor for Advisors platform for free: inovestor.com\/en-CA\/store\/<\/a><\/i><\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

What are we looking for? The tech rally shouldn\u2019t be a surprise considering this year\u2019s work-from-home environment. The health and safety measures put in place by government authorities around COVID-19 forced consumers to change their habits to include more tech products in their lifestyle. But do tech stocks justify their lofty valuations? For perspective, we […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[626,627],"tags":[656],"class_list":["post-44327","post","type-post","status-publish","format-standard","hentry","category-number-cruncher-en-us","category-screeners-en-us","tag-technology-en-us"],"acf":[],"yoast_head":"\nSigns of Elevated Risk in Lofty Tech Stock Valuations - Inovestor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Signs of Elevated Risk in Lofty Tech Stock Valuations\" \/>\n<meta property=\"og:description\" content=\"What are we looking for? The tech rally shouldn\u2019t be a surprise considering this year\u2019s work-from-home environment. The health and safety measures put in place by government authorities around COVID-19 forced consumers to change their habits to include more tech products in their lifestyle. But do tech stocks justify their lofty valuations? For perspective, we […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/\" \/>\n<meta property=\"og:site_name\" content=\"Inovestor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Inovestor\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-07T13:34:00+00:00\" \/>\n<meta name=\"author\" content=\"Newswire Inovestor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Inovestor_\" \/>\n<meta name=\"twitter:site\" content=\"@Inovestor_\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newswire Inovestor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/\"},\"author\":{\"name\":\"Newswire Inovestor\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/4a05be738abb4600b8509b4f2d5a0bd7\"},\"headline\":\"Signs of Elevated Risk in Lofty Tech Stock Valuations\",\"datePublished\":\"2020-10-07T13:34:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/\"},\"wordCount\":743,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#organization\"},\"keywords\":[\"Technology\"],\"articleSection\":[\"Number Cruncher\",\"Screeners\"],\"inLanguage\":\"en-USA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/\",\"url\":\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/\",\"name\":\"Signs of Elevated Risk in Lofty Tech Stock Valuations - Inovestor\",\"isPartOf\":{\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#website\"},\"datePublished\":\"2020-10-07T13:34:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/#breadcrumb\"},\"inLanguage\":\"en-USA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.inovestor.com\/en-us\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Signs of Elevated Risk in Lofty Tech Stock Valuations\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#website\",\"url\":\"https:\/\/www.inovestor.com\/en-ca\/\",\"name\":\"Inovestor\",\"description\":\"Make investment decisions that matter most\",\"publisher\":{\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.inovestor.com\/en-ca\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-USA\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#organization\",\"name\":\"Inovestor\",\"url\":\"https:\/\/www.inovestor.com\/en-ca\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-USA\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.inovestor.com\/wp-content\/uploads\/2022\/04\/Inovestor-logo-high-res.png\",\"contentUrl\":\"https:\/\/www.inovestor.com\/wp-content\/uploads\/2022\/04\/Inovestor-logo-high-res.png\",\"width\":1581,\"height\":422,\"caption\":\"Inovestor\"},\"image\":{\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Inovestor\/\",\"https:\/\/x.com\/Inovestor_\",\"https:\/\/www.linkedin.com\/company\/inovestor\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/4a05be738abb4600b8509b4f2d5a0bd7\",\"name\":\"Newswire Inovestor\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-USA\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/78fc6fbe2a1682a18a02d0addf9d93b68e1cf7bf880a315179f181cc5e834df7?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/78fc6fbe2a1682a18a02d0addf9d93b68e1cf7bf880a315179f181cc5e834df7?s=96&d=mm&r=g\",\"caption\":\"Newswire Inovestor\"},\"url\":\"https:\/\/www.inovestor.com\/en-us\/author\/inovestor-media\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Signs of Elevated Risk in Lofty Tech Stock Valuations - Inovestor","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/","og_locale":"en_US","og_type":"article","og_title":"Signs of Elevated Risk in Lofty Tech Stock Valuations","og_description":"What are we looking for? The tech rally shouldn\u2019t be a surprise considering this year\u2019s work-from-home environment. The health and safety measures put in place by government authorities around COVID-19 forced consumers to change their habits to include more tech products in their lifestyle. But do tech stocks justify their lofty valuations? For perspective, we […]","og_url":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/","og_site_name":"Inovestor","article_publisher":"https:\/\/www.facebook.com\/Inovestor\/","article_published_time":"2020-10-07T13:34:00+00:00","author":"Newswire Inovestor","twitter_card":"summary_large_image","twitter_creator":"@Inovestor_","twitter_site":"@Inovestor_","twitter_misc":{"Written by":"Newswire Inovestor","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/#article","isPartOf":{"@id":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/"},"author":{"name":"Newswire Inovestor","@id":"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/4a05be738abb4600b8509b4f2d5a0bd7"},"headline":"Signs of Elevated Risk in Lofty Tech Stock Valuations","datePublished":"2020-10-07T13:34:00+00:00","mainEntityOfPage":{"@id":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/"},"wordCount":743,"commentCount":0,"publisher":{"@id":"https:\/\/www.inovestor.com\/en-ca\/#organization"},"keywords":["Technology"],"articleSection":["Number Cruncher","Screeners"],"inLanguage":"en-USA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/","url":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/","name":"Signs of Elevated Risk in Lofty Tech Stock Valuations - Inovestor","isPartOf":{"@id":"https:\/\/www.inovestor.com\/en-ca\/#website"},"datePublished":"2020-10-07T13:34:00+00:00","breadcrumb":{"@id":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/#breadcrumb"},"inLanguage":"en-USA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.inovestor.com\/en-us\/2020\/10\/signs-of-elevated-risk-in-lofty-tech-stock-valuations\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.inovestor.com\/en-us\/"},{"@type":"ListItem","position":2,"name":"Signs of Elevated Risk in Lofty Tech Stock Valuations"}]},{"@type":"WebSite","@id":"https:\/\/www.inovestor.com\/en-ca\/#website","url":"https:\/\/www.inovestor.com\/en-ca\/","name":"Inovestor","description":"Make investment decisions that matter most","publisher":{"@id":"https:\/\/www.inovestor.com\/en-ca\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.inovestor.com\/en-ca\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-USA"},{"@type":"Organization","@id":"https:\/\/www.inovestor.com\/en-ca\/#organization","name":"Inovestor","url":"https:\/\/www.inovestor.com\/en-ca\/","logo":{"@type":"ImageObject","inLanguage":"en-USA","@id":"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/logo\/image\/","url":"https:\/\/www.inovestor.com\/wp-content\/uploads\/2022\/04\/Inovestor-logo-high-res.png","contentUrl":"https:\/\/www.inovestor.com\/wp-content\/uploads\/2022\/04\/Inovestor-logo-high-res.png","width":1581,"height":422,"caption":"Inovestor"},"image":{"@id":"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Inovestor\/","https:\/\/x.com\/Inovestor_","https:\/\/www.linkedin.com\/company\/inovestor"]},{"@type":"Person","@id":"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/4a05be738abb4600b8509b4f2d5a0bd7","name":"Newswire Inovestor","image":{"@type":"ImageObject","inLanguage":"en-USA","@id":"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/78fc6fbe2a1682a18a02d0addf9d93b68e1cf7bf880a315179f181cc5e834df7?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/78fc6fbe2a1682a18a02d0addf9d93b68e1cf7bf880a315179f181cc5e834df7?s=96&d=mm&r=g","caption":"Newswire Inovestor"},"url":"https:\/\/www.inovestor.com\/en-us\/author\/inovestor-media\/"}]}},"_links":{"self":[{"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/posts\/44327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/comments?post=44327"}],"version-history":[{"count":0,"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/posts\/44327\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/media?parent=44327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/categories?post=44327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inovestor.com\/en-us\/wp-json\/wp\/v2\/tags?post=44327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}