Tech sell-off is healthy

With many technology names trading well above our fair value estimates, the recent pullback in the sector isn’t a huge surprise.

Brian Colello, CPA 29 March, 2018 | 5:00PM

 

 

Brian Colello: We think Facebook has a wide moat based on intangible assets around the data that it owns. It has enough data about users that it can allow advertisers to better target customers, get a better return on their investments, and in turn, Facebook's able to capture better pricing. That's what contributes to a lot of our high growth rates for Facebook over the next decade. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Facebook Inc A200.72 USD-4.50
NVIDIA Corp273.28 USD-7.07

About Author

Brian Colello, CPA

Brian Colello, CPA  Brian Colello, CPA, is director of technology, media, and telecom equity research for Morningstar.