These Investors Think There’s a Biotech Bubble That’s About to Burst
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The Nasdaq Composite Index’s advance toward a record is renewing the debate over whether the value of its stocks is inflated -- and not just for technology companies.
Biotechnology had the biggest weight Thursday of any industry on the index at 11.2 percent, edging out both Internet companies and computer hardware makers, according to data compiled by Bloomberg. The 269 biotech companies have been one of the biggest contributors to the Nasdaq’s gain, with a more than 500 percent return over the past four years, compared with 166 percent for hardware and 97 percent for Internet.