No time right now?
A well-known tech investor predicts the Nasdaq to grow further in 2021. However, the stock market expert sees a rather black view for Airbnb and Doordash, which have launched brilliantly on the stock exchange.
Since the temporary slump in March, the Nasdaq tech stock market has skyrocketed. So far a new all-time high is said to have been reached over 50 times in the current year. The Nasdaq Composite Index is hovering near the 13,000 mark and has almost doubled since March. Paul Meeks, longtime tech investor and portfolio manager at Independent Solutions Wealth Management, has now dared to look into the crystal ball regarding the development of the Nasdaq in the coming year.
Tech stocks: Investor expects outperformance
The industry expert expects the Nasdaq to grow further in 2021 – even if things could go downhill at the beginning of the year. Ultimately, according to Meeks, the corona pandemic has permanently changed the way people work, go to school or do their daily tasks. Accordingly, he reckons that the tech values will outstrip the development of the other stock market representatives, like Meeks the US broadcaster CNBC said.
Potential investors should keep their hands off two new Nasdaq representatives or reduce existing positions: The IPOs of Airbnb and Doordash are enormously overrated, according to Meeks. The tech investor says he has already sold the shares he received from Airbnb when it went public. At Doordash, he advises selling or betting on a price collapse.
Airbnb and Doordash IPOs greatly overrated
The food delivery company’s share price has skyrocketed 54 percent since it went public. But: There is nothing special about the business model that justifies the high rating, according to Meeks. Doordash is currently trading at 20 times its sales. In the case of good software companies, on the other hand, it is only six times as much. Meeks is similarly harsh with the Airbnb share: The 140 percent increase since the stock market launch will not withstand. Both IPOs, so the Meeks conclusion, are downright “ridiculously” overrated.