Profitless Tech Stocks Surge 57%, Beating S&P 500 as Wall Street Warns Investors
Updated
Updated · Bloomberg · Jun 1
Profitless Tech Stocks Surge 57%, Beating S&P 500 as Wall Street Warns Investors
2 articles · Updated · Bloomberg · Jun 1
A Goldman Sachs basket of profitless technology companies has jumped 57% this year, far outpacing the S&P 500's 11% gain and marking a sharp rally in the market's most speculative tech names.
May drove much of that move: the basket climbed 27%, beating the Nasdaq 100 by 17 percentage points for its strongest outperformance since November 2020.
Wall Street strategists are warning investors to cut exposure, arguing the riskiest corner of tech is running too far, too fast after outperforming larger peers at the quickest pace in nearly six years.
Why are investors betting on AI stocks when most companies see no financial return from the technology?
Could the tech sector's massive, hidden AI debt trigger the next major financial crisis?
Is the AI boom built on real demand or a bubble inflated by circular financing deals?