The big drop in tech stocks, including those listed on Bursa Malaysia, is a contrast to the rally over the past 18 months and the consensus buy calls made by investment analysts. Many local tech stocks have retreated at least 20% from their peaks. Wong noted that historical valuation might not be that good a yardstick for tech stocks. With the visible revenue and earnings growth at a much higher pace, current conventional metrics may not be a good measure,” he explained. And that will be the main fuel for the corporate earnings growth in the sector.

Source: The Edge Markets February 01, 2022 07:00 UTC