Michael Stiller of Nasdaq’s Corporate Solutions Advisory Services team shares a recap of the tech sector in the last year and a look ahead through 2016 and beyond.
- Looking back at 2015, we saw the outperformance of growth tech versus value tech
- Institutional money sold value names and piled into momentum driven stories – especially in the second half of 2015
- The first quarter of 2016 saw a dramatic reversal of the 2015 trend
- Mega cap growth stories flattened out and investors re-rated the most richly valued growth names in the first two months of the year
- Institutional money rotated into unloved value tech names
- For 2016 and beyond, there is a brighter picture looking out vs. the beginning of this year
- Capital raising is open: It’s a great time for those issuers looking to raise to develop relationships with quality investors well ahead of offerings
- The market is back to the highs; growth tech is leading again with buying by growth managers that missed out on 2015’s move higher in tech
- While mobile and cloud have dominated for the last four years, institutional investors are now looking beyond those themes to find investment opportunities– towards the extensions of mobile and cloud such as artificial intelligence, driverless cars, virtual reality, messaging and bots
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.