For a sector accustomed to getting headlines for its stellar growth and equity returns, the past few weeks have felt a bit different for technology companies. It's time to take stock, think about what we’ve learnt and revisit our bullish macro case for the sector. In short, however, I still like tech.
How could investors not like technology stocks? They’re cool companies, led by charismatic CEOs making irresistible products. And what's more, they're posting amazing growth rates with stocks that just keep going up. I’m sure the bottom-up investment case is much more sophisticated than that, but today I want to lay out the strong macro case for tech stocks.
Recently on CNBC, I discussed technological disruption in the auto industry from car sharing, autonomy and electric vehicles. I argued that batteries were likely to be similar to microchips – falling 20% in price every year – and could therefore disrupt the internal combustion engine.
A few weeks ago Emiel showed us a photo of his Panther Kalista classic car. Not to be outdone, I’m including a photo of my car, a Nissan Leaf. It may have less character, but if the Panther is a reminder of car history, the Leaf could provide a glimpse of the car future.