Shares of many technology giants are at record highs, rekindling comparisons to the dot-com bubble. But this boom looks different. The dominant companies have solid profits, enormous cash flows, large market share and high barriers to entry. At current price levels, there is no denying that the valuations are high, but nowhere near the unsustainable levels of the dot-com period.
Here’s what some of Capital Group’s portfolio managers and analysts have to say:
1. Unlike the Dot-Com Bubble, Profits Are Now in Sync With Prices