Technology stocks are all the rage for the past few months. And there is little wonder to it. In a recent article on Markets Insiders, four factors are determined to drive returns in the stock market. They are namely interest rates, macroeconomic, geopolitics and innovation. With the first three factors in a rather unfavourable position in the foreseeable future, we could only rely on the last factor (innovation) for any returns in the stock market and that is probably why technology stocks are the darling of the market.
I have already written quite a few articles on the technology sector generally. You may refer here and here While those articles seem to just focus on the potential of the technology sector in the near-mid term future, I would like to explore deeper on a more fundamental aspect of the technology stock.
And yes, you get it right. How do you value a technology company?...