Finding Unsung Heroes in the Tech Sector

Fifteen years since the dotcom bubble burst, quality technology stocks are delivering some all-time highs, albeit against a very different landscape

Sam Shaw 10 November, 2015 | 7:00AM

Fifteen years since the dotcom bubble burst, quality technology stocks are delivering some all-time highs, albeit against a very different landscape. But are the household names always the best bets?

The sector has matured significantly; in 2000, the ‘world wide web’ was a nascent entity, many companies were failing to monetise their business models effectively, forecasting was typically based on uncharted territory and infrastructure overcapacity was common.

As well as such fundamental differences, valuations have come down to much more reasonable levels; today the sector is trading at around 15x price/earnings rather than 60-plus multiples typical at the turn of the millennium.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Allianz Technology Trust Ord2,345.10 GBP0.65
Alphabet Inc Class C1,482.96 USD0.00 Inc3,164.68 USD0.00
AXA Framlington Global Technology R Acc184.81 GBP0.83
Facebook Inc A253.67 USD0.00
Fidelity Global Technology A-Dis-EUR32.54 EUR-0.45
HP Inc17.58 USD0.00
International Business Machines Corp122.94 USD0.00
Manhattan Associates Inc95.79 USD0.00
Microsoft Corp205.01 USD0.00 Inc194.85 USD0.00
ServiceNow Inc439.20 USD0.00
Tesla Inc1,430.76 USD0.00
Workday Inc Class A180.92 USD0.00
Zendesk Inc91.15 USD0.00

About Author

Sam Shaw  is a financial journalist and broadcaster writing for Morningstar.

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