Chart of the week: The tech industry price slide

Tech stock p/e ratios

Air has been hissing out of the technology bubble since March. This looks set to continue as investors seem to have realised they got a bit carried away, says the Wall Street Journal.

Prices and valuations in the hottest sectors have slipped – but merely from insanely to absurdly overpriced.

Twitter is still on 285 times next year’s earnings, down from over 1,000 in March. The forward price-to-earnings ratios of other social media stocks are still eye-watering too.

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