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A Look at Tech's Big Rally
What’s driving the rally in technology stocks? The answer is more than just “exceptionally strong” fundamentals, according to Jefferies managing director Brent Thill.
Technology stocks are strong for a plethora of reasons, Thill said during CNBC’s “Squawk Alley” segment Tuesday morning. Multiple technology stocks under Jefferies’ coverage are showing growth rates in the 20-30-percent range, which helped “pick up the slack” seen in weaker industries, the analyst said.
Valuation metrics for big tech names like Facebook, Inc. (NASDAQ: FB) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) are still attractive at around 12x EBITDA, Thill said. This multiple represents a discount to …