Managers wary amid new tech bubble fears

More than a decade after the dotcom crash, managers consider whether current technology valuations point to new bubble in the sector

Valuations in the tech sector are becoming stretched, with social networking leader Facebook recently valued at $50bn and speculation Twitter could be worth up to $4bn. But managers dismiss fears of a second bubble in the sector, and suggest careful stockpicking will reward investors. Goldman Sachs Asset Management (GSAM) bought a $450m stake in Facebook this month, and is inviting its clients to invest up to $1.5bn of their money in the stock. GSAM chairman Jim O’Neill said Facebook was an attractive long-term proposition, “because advertising revenue growth is so strong.” He admitt...