Odaily Planet Daily report: Many Wall Street figures are warning investors holding speculative tech stocks to sell now. Goldman Sachs’ basket of unprofitable tech stocks rose 27% in May, outperforming the Nasdaq 100 Index by 17 percentage points—the best performance for this portfolio since November 2020.
Year to date, the portfolio has risen 57%, compared to an 11% gain in the S&P 500. Andrew Taylor’s JPMorgan Market Intelligence group noted that, following such a sharp rally, investors should “remain cautious on riskier names within the tech sector,” given that potential yields may still remain elevated. Taylor advocates shifting toward more established companies in the industry, particularly as bond yields rise, since this could most significantly impact smaller, loss-making firms. He added that stock buybacks by larger, more profitable tech stocks “help drive the transition toward higher-quality businesses.” (Cninfo)