Tue. Jun 25th, 2024
The Influence of Price on Technology Investments for Investors

Investing in technology can be a daunting task due to the high valuations of many companies in the sector. Wealth managers and investors are on the lookout for ways to capitalize on opportunities while keeping an eye on valuations. Dan Smith, a senior equity analyst at Canaccord Genuity Wealth Management, acknowledges the challenges of investing in technology with current market conditions.

Storm Uru, co-manager of the Liontrust Global Technology fund, highlights the significant investment opportunities available to tech-savvy investors. However, he cautions against overvaluing stocks and emphasizes the importance of setting target prices for each stock he owns. If a stock exceeds its target price, Uru would consider selling it. He believes that focusing on companies that benefit from artificial intelligence (AI) rather than AI companies themselves can provide more attractive valuations.

Smith also prefers to invest in companies that facilitate AI rather than investing directly in AI companies. Similarly, Uru finds companies that benefit from AI to be an increasingly attractive area for investment. By focusing on these types of companies, investors can harness technological advancements while also considering valuation factors.

In summary, investing in technology can be expensive at present due to high valuations for many companies in the sector. However, wealth managers and investors are looking for ways to access opportunities while keeping valuation in mind. By focusing on companies that harness AI capabilities or benefit from it, investors can access technological advancements while also considering valuation factors.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

Leave a Reply