• Sat. May 25th, 2024

Navigating the Tech Investment Market: Balancing Valuation and Growth Potential

BySamantha Nguyen

Mar 25, 2024
Investors’ considerations of price in technology investments

Investing in technology can be expensive, but there are ways for wealth managers and investors to access the opportunity while keeping valuation in mind. According to Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management, investing in technology is currently not cheap. Some US tech giants are experiencing incredibly high valuations, which makes timing when to invest and when to exit a challenge for investors.

Timing when to invest and when to exit, while maximizing returns, is a challenge for investors. Storm Uru, who co-manages the Liontrust Global Technology fund, believes that the opportunity in technology is significant and just beginning. However, he is cautious about excessive valuations and sets target prices for the stocks he owns. If a stock exceeds the target price, he sells it unless the fundamental reason for owning the stock has improved. Smith focuses more on companies that facilitate artificial intelligence (AI) rather than pure AI companies due to more attractive valuations in that sector.

Uru also believes that companies benefiting from AI rather than being AI companies themselves are worth investing in. This approach has become increasingly interesting to him. Overall, both experts emphasize the importance of considering valuation when investing in technology while also being aware of the potential for exponential growth.

Investing in technology can be expensive at the moment with some US tech giants experiencing incredibly high valuations. Timing when to invest and when to exit is crucial while maximizing returns is also challenging for investors.

Storm Uru co-manages Liontrust Global Technology fund and believes that there’s an opportunity in technology that’s just beginning but he’s cautious about excessive valuations. He sets target prices for his investments and if a stock exceeds it he sells it unless there’s a fundamental reason why he owns it.

Dan Smith focuses on companies facilitating AI rather than pure AI companies due to more attractive valuations in this sector.

Both experts emphasize considering valuation while investing in technology while also being aware of exponential growth potential.

Investors need to consider their investment options carefully before making any decisions as investing can be expensive at present with some US tech giants experiencing incredibly high valuations.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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