I am bemused by those endlessly calling US tech a bubble. It’s not. Goldman shows us why today:
This is secular growth story as lowflation drives ever more technology productivity spending:
Multiples are almost fantastically cheap for the growth:
There are some dimensions of bubblyness in frontier firms and the new age FAANGS – such as Tesla, Amazon, Netflix etc – where earnings are less apparent. And, of course, tech gets hit when markets get nervous, as does all high-beta equity. But current valuations in the Nasdaq and the drivers therein are far more conservative than past inflations.
If there is tech bubble anywhere it is in Australia where our handful of tech success stories have been so overbid for lack of alternatives that the multiples dwarf the US.