In the last 2 years, MSFT has dropped below $400 multiple times and then rebounded pretty fast.
It's either building a strong support or strong resistance. What are your thoughts? Are you buying more shares?
This post will get a lot of downvotes because most of you are heavily invested in momentum stocks, eventhough we are literally on the value investing sub (the first reason why this market is so idiotic).
It's so obvious the current valuations of tech stocks will be unsustainable in the future. Does everyone actually believe that 5-10 years from now, there will be trillions pumped into AI every single year? Because that's what the current valuations suggest.
Where will this money come from? Who will be the customers of these companies when everyone will be unemployed because of AI?
The tech sector's market cap is literally the same as all other sectors combined (finance, healthcare, industry, energy, retail, real estate, etc.) and going up 2-3% every day.
This is the exact same thing that happened back in 1999. The tech sector was heavily overvalued because everyone's expectations were comically high, and everyone knows what followed - the dot com bubble crash, and valuations dropping by up to 80-90%.
Feel free to downvote me and tell me to put the fries in the bag... and no, I don't own NVO and PayPal 😁