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These 4 Tech Stocks Are Getting Way Too Expensive By StockNews

by Mike Robinson

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© Reuters. These 4 Tech Stocks Are Getting Way Too Expensive

Although tech stocks have the most long-term growth prospects with surging demand and rising investments worldwide, certain tech stocks have reached price levels that don’t justify their current fundamentals and growth potential. Snowflake (SNOW), Cloudflare (NYSE:), Carvana (CVNA), and Bill.com (BILL) look way too expensive at their current price levels and could witness a pullback in the near term.Although the major stock indices shrugged off concerns over the Evergrande debt crisis, the market should remain volatile as the Fed looks to taper, case counts remain stubbornly high, and the economy is decelerating.

Along with a low-interest-rate environment, the rising demand for technology products and solutions amid ongoing digitalization and continued innovations should keep driving the sector’s growth. The US’s tech sector is forecast to increase 6.7% by 2022.

However, certain stocks in tech have seen their prices rise far beyond what they are worth due to a bullish environment. At their current prices, tech stocks Snowflake Inc., Cloudflare, Inc., Net, Carvana Co., and Bill.com Holdings, Inc. are way too costly considering the growth prospects and fundamentals. This could lead to a market pullback.

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