Can Tech Earnings Reinforce Sky High Valuations?

The video discusses the historical context of valuations, noting that only 4% have exceeded 25 times earnings since 1871. Currently, 60% of SNP components are trading above this level. The tech sector is not in extreme territory but may be nearing peak multiples due to limited new value levers. The discussion covers tech categories like hardware and software, and the impact of the coronavirus on tech companies, particularly Apple and Amazon. Despite cyclical challenges, Apple is well-positioned with 5G and AI advancements, suggesting strong future prospects.

What percentage of historical valuations have exceeded 25 times earnings since 1871?

• 4%

• 10%

• 25%

• 60%

Which sector is currently approaching peak multiples according to the discussion?

• Energy

• Finance

• Technology

• Healthcare

What are the main categories discussed within the tech industry?

• Real Estate, Construction, Manufacturing

• Retail, Finance, Healthcare

• Automotive, Energy, Agriculture

• Hardware, Software, Semiconductors

Which companies are highlighted as having significant advantages due to 5G and AI?

• Microsoft and IBM

• Apple and Amazon

• Tesla and Netflix

• Google and Facebook

How does the speaker view the impact of the coronavirus on tech companies?

• As irrelevant to tech

• As a major long-term threat

• As an opportunity for growth

• As a minor cyclical challenge