Bank of England warns U.S. tech stock valuations may be out of whack

• Valuations for U.S technology stocks may be too high given the current macroeconomic backdrop and spike in rates, according to the Bank of England.
• The U.K. central bank’s comments come at a time when many popular technology stocks trade at a sharp premium to the S&P 500 on a price-to-earnings basis.

Even after a pullback in some technology shares following the recent climb in rates, the price-to-earnings ratios for Microsoft, Alphabet and Nvidia sit at 29, 21 and 31 times next 12-month earnings, respectively. By comparison, the PE for the S&P 500 sits at roughly 18 times.

https://www.cnbc.com/2023/10/10/bank-of-england-warns-us-tech-stock-valuations-may-be-out-of-whack.html