Don’t be misled by the six largest global tech stocks

BVWire–UKIssue #36-1
March 1, 2022

Netflix and Facebook stock faltered since the last issue of BVWire—UK, reminding the rest of the investment world that you can’t use large-tech stock prices as a measure for value in any other sector of the economy.

Once again, Aswath Damodaran offers some clear perspective for business valuers (and everyone else—his “Musing on Markets” editorial on this subject has over 21 million views—our business valuation rock star!):

Over the course of the decade (2010-2019), the FANGAM stocks increased in collective market capitalisation from $719 billion from $5.07 trillion, and their share of the overall equity value of all US stocks also surged from 6.5% to 14.9%. It is not hyperbole that without these stocks, the last decade would not have been a great one for US equities.

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