The "tech" sector label is a fraud in its own right.
It makes sense to have a separate label for companies that develop software. They have a unique investment appeal because their cost of production doesn't increase with units sold, so higher PE ratio if growing.
For "some reason" Netflix isn't priced as a media company. Tesla isn't priced as manufacturing.
The "tech" sector label is a fraud in its own right.
It makes sense to have a separate label for companies that develop software. They have a unique investment appeal because their cost of production doesn't increase with units sold, so higher PE ratio if growing.
For "some reason" Netflix isn't priced as a media company. Tesla isn't priced as manufacturing.
That's fair, I guess it depends on how you divide it.