AllianceBernstein's Qiu: Debunking the myths of high-priced tech stocks

Where now for the sector?

Until recently, technology stocks seemed unstoppable. Giants such as Apple and Microsoft, as well as technology-driven consumer firms such as Amazon and Alibaba Group, continue to do well through the COVID-19 pandemic.

Meanwhile, an emerging group of resilient, innovative leaders, ranging from cloud-based service providers and fintech to ecommerce enablers, also showed solid growth, fueled by rapid business and consumer changes brought by the pandemic. Even with the recent pullback, the tech-heavy Nasdaq Composite index remains at historic highs, surging 21.8% this year through 11 September, while the MSCI World Technology index is up 23.2% for the period. When compared to the more muted rebounds of the S&P 500 and MSCI World indices, it is clear that investors remain optimistic about the outlook fo...