🚨US Technology stocks are the most expensive in history
The S&P 500 Information Technology Price-to-Sales ratio hit an all-time high
The S&P 500 Information Technology Price-to-Sales ratio (P/S) hit a record 9.7x at the end of 2024. The ratio almost doubled in 2 years.
The S&P 500 technology sector P/S is now ~39% higher than at the 2000 Dot-Com Bubble peak.
In turn, the Magnificent 7 P/S ratio hit 8.6x rising by 110% since December 2022.
The US technology sector is currently priced for perfection. In other words, valuations have risen too far too fast and investors' expectations for future revenues and profits have rarely been greater.
Is the Big Tech going to deliver?
For the full analysis of the US stock market valuations, read the following articles:
If you find it informative and helpful you may consider a paid subscription (or annual if subscribed), become a Founding Member, and follow me on Twitter or Nostr:
Why subscribe?