Tech wounds are taking time to heal

A full decade after the Nasdaq peaked and then toppled dramatically from investor favour, clearly the wounds of technology investors are still taking time to heal.

Yet this is despite the fact technology as an investment has more recently beaten pretty much any investment outside of emerging markets and commodities, both of which continue to see massive inflows, despite their volatility. So why has technology failed to recover its reputation? Perhaps because people still do not understand what drives the sector. Today’s technology companies are perhaps still suffering, in investors’ minds at least, from the reputational damage that came out of the dotcom bubble, when companies such as broadcast.com were purchased for at $5.9bn by Yahoo without havi...