The mega-cap FAANG (Facebook, Apple, Amazon, Netflix and Google/Alphabet) stocks seem to be gathering strength and competitive dominance as they grow in size.
As a result, the current run in tech stocks is very different to the 2000 tech bubble, as the stocks in the current cycle are supported by growing cashflows and very high, but not yet bubble-like, valuations. These dynamics create a bit of a capitalist puzzle, as most companies show some signs of slowing down and mean reversion to more pedestrian growth rates and returns on capital as they grow. These mega-cap tech companies, however, are treating investor capital so well that investors have crowded into tech. The critical question is whether these companies truly are different? D...
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