But many other former highflyers have further room to fall. Notably, even after a 44% decline from its 52-week high, Amazon.com Inc. still trades at 49 times forward earnings, and Tesla Inc. trades at 61 times despite a decline of 41%.
That doesn’t mean tech stocks will fall further, obviously, and investors looking for discounts in tech will find them aplenty. Indeed, those who liked tech stocks six months ago should love them now. But investors who are buying tech believing that the lows are in should take another hard look at the numbers.
Nir Kaissar is a Bloomberg Opinion columnist covering markets. He is the founder of Unison Advisors, an asset management firm.