AB Bernstein’s Toni Sacconaghi On ‘Stratospheric’ Tech Valuations

(Marketwatch)”AB Bernstein’s Toni Sacconaghi warns “risk is increasing in tech, especially with high-priced stocks” because of stratospheric valuations — the sector is trading at 21.4 times forward earnings, its highest level in 15 years — and predictions of a “startling” decline in earnings the next 12 months.

“Overall earnings growth is expected to be double-digit negative for Semiconductors and Tech Services,” Sacconaghi wrote in a Monday note to clients. He highlighted seven of the 17 largest-cap tech companies have flat to negative forward earnings growth”.

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