As Internet Stocks Hit Records, Familiar Questions About Bubbles Arise

Inflows suggest “renewed exuberance” while valuations have gotten to “spicy” levels, Bank of America writes

Double-digit gains by internet stocks, among the biggest companies on Wall Street, have pulled the technology sector to record highs in 2017, with the industry recovering all the losses suffered in the busting of the dot-com bubble. However, the return to these levels has raised familiar questions about valuation, and whether investors have again put too much faith in the fast-growing tech sector.

While analysts were quick to note differences between 2017 and 2000—including companies that are more established and strong profits from major players—there are familiar elements of frothiness in price and investor exuberance, some analysts and investors say.

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