• Market lines up with Quant view of high beta tech stocks
• Facebook, Netflix, Priceline slide into negative territory
• Facebook's acquisition strategy accentuates concerns
By Peter Garnry
High beta technology stocks with rich valuations have long been viewed overvalued by our quant model but with a neutral to positive view because of strong price action. With the recent mini-crash in momentum, high beta and biotechnology stocks, price action has certainly changed and with it our model's views on these popular stocks.
Overvalued technology stocks downgraded to negative
While it came out of nowhere, investors suddenly made a significant repricing of technology stocks with sharp declines the result. Our quant model has processed the deteriorating price action and coupled with excessively high valuations, has downgraded Facebook, Netflix, and Priceline to a negative view and maintained its negative view on Yahoo.
