Why it s never been cheaper for investors to snap up US tech giants
Facebook and Amazon shares are trading at their cheapest-ever levels relative to the S&P 500
10 February 2021 • 6:00am
Tech stocks have soared in the pandemic but far from becoming prohibitively expensive, the explosive earnings growth delivered by the world s biggest technology companies means their shares have never been cheaper.
Shares in social media giant Facebook and e-commerce behemoth Amazon are now trading at their cheapest-ever levels relative to the S&P 500, the index of the largest American companies, according to Peter Bourbeau, of asset manager Clearbridge Investments.
Mr Borbeau pointed to their price-to-earnings (p/e) ratios, a measure of how many multiples of a company s profits their shares cost. Facebook s p/e ratio of 26 is lower than the 27 average across companies in the S&P 500, while Amazon s, although nearly three times higher at 79, has fallen to its lowest-ever premium over th
Reddit boom-and-bust shines light on European market bubble risk
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The retail trading frenzy that shook the US market over the past few weeks made a ripple across European bourses, shining a light on their frothy valuations and showing how easily the party could end.
With Europe’s equity benchmark trading at a near record-high valuation level, the word “bubble” is creeping into analysts’ notes. The latest surge came on top of an almost yearlong rally in stocks and corporate bonds, fueled by unprecedented stimulus measures from central banks and governments fighting the economic impact of the pandemic.
With returns-hungry market players piling into risky assets, valuations have soared, setting the stage for potential pullbacks as Europe struggles with its vaccine rollout, which could imperil the region’s recovery.
GameStop rally reignites as retail traders step back in
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GameStop Corp. advanced on Friday and was on track to recoup much of Thursdayâs US$11 billion blow after Robinhood Markets Inc. and other brokerages eased trading restrictions on the video-game retailer.
The shares at the center of the retail craze thatâs gripped Wall Street and drawn scrutiny from Washington, rose 67 per cent to US$330 at 12:50 p.m, after earlier climbing as much as 114 per cent. in New York. The stock plunged a record 44 per cent on Thursday. Shares in other day-trader favorites also rebounded.