The technology sector has always been popular among investors. The favored FAANG – which comprises Facebook (ticker: FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Google (GOOG, GOOGL) – seemed unable to do any wrong in the eyes of investors. While the economy reeled from the global pandemic, valuations on the big tech names continued to climb higher and higher – until September, when double-digit losses to Facebook, Apple, Google and Tesla (TSLA) took about 5% off the Nasdaq.
Talk has turned to a potential tech bubble, but one month’s decline is not enough to bring valuations back in line. The Nasdaq is still only around 750 points below its all-time high at the start of last month. September marked an overdue correction, but the question is not just what is happening with the tech sector now; it’s what will the future bring for tech?