From CNBC Pro’s “Barclays says market valuations at dotcom bubble levels, downgrades large tech stocks” ($) posted Friday morning:
Stock valuations are approaching extreme levels last seen during the dotcom bubble, with the some of the largest risk hidden in the technology darlings that led the market rebound, according to Barclays.
The Wall Street firm said that even after the recent pullback, stock valuations are at their 2000 dotcom peaks, forcing Barclays to downgrade the FANMAG (Facebook, Amazon, Netflix, Microsoft, Apple and Google-parent Alphabet) sector to market weight given the stretched valuations.
“Measures of equity valuations are now at 2000 dot-com bubble levels and appear to be pricing in an ideal scenario where there will [be] an extremely strong cyclical recovery driven by a vaccine, the market shares gains from the ‘Resilient’ (large cap tech) stocks will accelerate, and US presidential elections will not pose a significant headwind to risky assets,” Barclays U.S. equity strategist Maneesh Deshpande told clients. “We continue to recommend a selective equity exposure.”
My take: It’s only been three days since Wells Fargo’s long-time Apple watcher, Aaron Rakers, reiterated his Overweight rating and raised his Apple target to $140 from $121. Maneesh Deshpande is new to me.
Note to free riders: Even at the introductory price, CNBC Pro costs $269 a year. Just sayin’.