Charts of the Week: ‘Is Tech Cheap, Now?’

Andreessen Horowitz

Research

25 Pages

a16z highlights some charts of the week with a focus on technology valuations. 

Key Takeaways

Valuation Premium Compressed: As of April 8, tech and software traded at about a 25% earnings premium to the rest of the market, far below a year ago and closer to 2018 levels.
Earnings Stayed Strong: BlackRock data showed US IT growth expectations rose from 31% at the start of the year to 43.4% by April 9, versus 18.7% for the broader market.
Insiders Turned Buyers: One analysis cited in the piece says insider buying for companies in the State Street Tech ETF reached its highest level in 15 years.
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