AllianceBernstein's CIO Caruso on the opportunities in US tech

Companies with high growth are worth higher price tag

High-growth US technology stocks have surged this year - and so have their valuations. But as companies like these consistently improve growth, they may actually be bargains in disguise.

At the end of June, shares of Facebook and Google's parent Alphabet respectively traded at multiples of 25.2x and 22.4x their estimated 2018 earnings.  To many investors, that sounds pricey. But what is important is to look at price/earnings (P/E) three to five years ahead. And simple P/E metrics do not really tell you whether a company is cheap or expensive. For that, you need to study a company's competitive positioning and business returns, and how its growth is funded. Turbo-charged tech: The drivers behind record inflows in Q1 Often, these trends are not reflected in earnin...