Can tech groups sustain their growth as US and China slow down?

Tech not immune from growth concerns

The technology sector may be better-placed over the long-term to deliver structural growth, but it is not immune from these concerns. Investors are correctly asking whether certain technology groups can sustain growth.

The market has, for some time, assumed certain companies could sustain growth rates of 30%-50% indefinitely. However, we are now starting to see limits to that growth, particularly among some medium-sized companies such as Yelp, Pandora, GrubHub and Twitter. While revenue growth has continued, growth in user numbers has stalled. The most recent example was Twitter - it saw its user growth stall in the final quarter of 2015, with 320 million average active users monthly. This was the first time in its history that monthly active users had not grown.  Time for fund groups to practice...