Are Tech Stocks in a Bubble? Nah.

That doesn't mean a little air won’t come out of Facebook and friends now and then.

If you follow financial news, you’ve likely seen a recent spate of headlines wondering if we’ve entered a bubble in technology stocks akin to the one that popped in March 2000, sending stocks tumbling into a bear market. Many such stories cropped up in early June, when a pullback in mega-size FAANG stocks — Facebook (FB), (AMZN), Apple (AAPL), Netflix (NFLX) and Google’s parent, Alphabet (GOOGL) — caused a 5.3% dip in Standard & Poor’s 500 Information Technology index (a subindex of the S&P 500) from June 8 through July 3. Tech stocks have since bounced back, and the tech index has returned 22.4% so far this year, including dividends, compared with an 11.1% total return for the overall market. Still, for wary investors, the June blip triggered an unpleasant memory.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Ryan Ermey
Former Associate Editor, Kiplinger's Personal Finance

Ryan joined Kiplinger in the fall of 2013. He wrote and fact-checked stories that appeared in Kiplinger's Personal Finance magazine and on He previously interned for the CBS Evening News investigative team and worked as a copy editor and features columnist at the GW Hatchet. He holds a BA in English and creative writing from George Washington University.