Nasdaq 100 analyst optimism has topped out, undermining price performance.
In terms of Big Tech vs. median S&P 500 stock. <em>”AMZN, GOOGL, META, MSFT, and NVDA are collectively expected to grow 2024 profits by 37% compared with 5% for the median S&P 500 stock. But we have previously noted that consensus estimates of sales growth for the five stocks is forecast to slow from 22% year/year in 1Q 2024 to 17% in 2Q, and further decelerate to 16% in 3Q and 14% in 4Q. NVDA sales growth is expected to slow from 262% year/year in 1Q to 111% in 2Q, 73% in 3Q, and 56% in 4Q. In contrast, sales growth for the median S&P 500 stock will be accelerating, albeit from a slower pace (year/year growth of 2%, 3%, 4% and 5%).”</em>
Source: Soc Gen cross asset
US forward tech PE is stretched at 32x. Tech relative price rise is way beyond rel eps and so leaves the sector vulnerable.