Analysts at Natixis study if there is an equity market bubble in technology shares in the US and conclude that while the forward PER looks high given the poor earnings performance in 2020 and 2021, the long-term earnings trend justifies a higher PER than the actual PER. Only the valuations of Amazon and Facebook are absurd. Key quotes “The PERs of Google, Apple and Microsoft are 30 to 35, which is high but the PERs of Facebook and Amazon are huge, 130 to 250!. We do not expect any earnings growth in 2020-2021 though the long-term earnings trend is strongly growing: a threefold increase to more than 18 in 10 years.” “In Nasdaq 100, PER has risen drastically from 25 to 30 with zero expected earnings growth in 2021, which explains the increase in the PER. Earnings multiplied by 4.5 in 10 years.” “Nasdaq excluding GAFAM shows a forward PER of 22, which is quite low, markedly lower than that of the total Nasdaq. Earnings are set to stagnate in 2021 but have been doubled from 2015 to 2020.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US Dollar Index Price Analysis: Rising bets for a test of 96.00 (and below) FX Street 3 years Analysts at Natixis study if there is an equity market bubble in technology shares in the US and conclude that while the forward PER looks high given the poor earnings performance in 2020 and 2021, the long-term earnings trend justifies a higher PER than the actual PER. Only the valuations of Amazon and Facebook are absurd. Key quotes “The PERs of Google, Apple and Microsoft are 30 to 35, which is high but the PERs of Facebook and Amazon are huge, 130 to 250!. We do not expect any earnings growth in 2020-2021 though the long-term earnings trend is strongly… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
