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Expert Insights on Investing in Technology: Valuation and Maximizing Returns

BySamantha Jones

Mar 25, 2024
Investors’ considerations of price in technology investments

Investing in technology is currently expensive, but wealth managers and investors can access the opportunity while keeping valuation in mind. According to Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management, investing in technology can be costly with some US tech giants experiencing incredibly high valuations. However, both experts emphasize the importance of considering valuation when investing in technology while also being aware of the potential for exponential growth.

Timing when to invest and when to exit, while maximizing returns, is a challenge for investors. Storm Uru, who co-manages the Liontrust Global Technology fund, believes that the opportunity in technology is significant and just beginning. He sets target prices for the stocks he owns and if a stock exceeds the target price, he sells it unless the fundamental reason for owning the stock has improved. Smith focuses more on companies that facilitate artificial intelligence (AI) rather than pure AI companies due to more attractive valuations in that sector.

Uru also believes that companies benefiting from AI rather than being AI companies themselves are worth investing in. This approach has become increasingly interesting to him as investors are becoming more aware of the potential benefits of AI in various industries such as healthcare and finance. Overall, both experts emphasize that investors should carefully consider their investment decisions and not let excessive valuations cloud their judgment when investing in technology.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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