Goldman Sachs Doesn't Think There's a Bubble in Tech Stocks
- Combined worth of tech giants exceeds Germany’s annual GDP
- Yet valuations look reasonable as profit growth drives stocks
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Bubble warnings are getting louder. American tech giants keep surging ahead of the market, with the Nasdaq Composite Index closing a fresh record. But Goldman Sachs has a soothing message.
Sure, tech stocks are worth a lot. At $3.8 trillion, the combined value of Facebook, Amazon, Apple, Microsoft and Google’s parent Alphabet tops the annual gross domestic product of Germany, and all the companies in Japan’s Topix index of stocks.