Will 2014 be the year the technology bubble bursts?

THE BIG QUESTION

clock • 7 min read

Tech stocks have taken a tumble in recent months, with some shares having climbed to multi-year or all-time highs. But it all came to an end last month as the Nasdaq reported its worst one-day fall since 2011 after it closed down 3.1%. Will 2014 be the year the technology bubble bursts?

Sandra Crowl investment committee member, Carmignac Gestion   Must show caution We should not be surprised to see US internet stocks losing some steam, given their steady 50% rise over the last 12 months, fuelled by investors’ vote of confidence in strong revenues, innovation, and growth potential. The correction has been hastened by the colossal upcoming $15bn Alibaba IPO, which will need a home; as well as Facebook’s maligned multibillion acquisitions of WhatsApp and Oculus. Take heart investors - we do not see any similarity to the run up in the internet bubble of 2000. Val...

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