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), Amazon.com (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.

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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 Kiplinger.com. 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.