At the top of the rankings for best-performing assets last year, the benchmark for US tech stocks could stall. Its tense valuation and the fear of stricter regulations on Gafams may weigh on the trend. Stability gives hope for a gain of 10% in just one month. But beware of the risk.
Featured asset for 2020, the Nasdaq index appreciated 43.6% in a particularly adverse health and economic environment. Supported by the ever increasing weight of Gafam (Google, Apple, Facebook, Amazon and Microsoft) whose business model has taken full advantage of containment and social distancing measures, the benchmark for American technology stocks is moving to historic records. Its valuation level at 46.8 and 33.6 times the estimated profits for 2020 and 2021, respectively, is fueling the debate on the existence of a bubble, even if, unlike the early 2000s, the Gafams have proven over time. quarters their ability to deliver impressive growth rates in their earnings and generate significant net cash flow. Still, it would be normal for this theme to take a break in favor of more cyclical and discounted stocks. Joe Biden’s induction into the White House on January 20 with full powers in Congress strengthens the prospect of measures in favor of more restrictive regulations aimed at breaking the monopoly of his giants, subjects of complaint around the world .
Reimbursed at 10 euros under condition
Faced with this lack of visibility on American tech, it is still possible to bet on the sector by means of stability. The one selected is issued by Société Générale with a deadline of February 19, 2021 and two terminals located at 9,500 points and 14,000 points for the highest. The certificate will be reimbursed 10 euros at maturity provided that the benchmark of technological stocks continues to evolve within the area defined by the two terminals. Given its buy price, stability is likely to deliver a gain of 10.4% in one month. But pay attention to the risk profile. This is far from being negligible since the stability will lose all of its value in the most pessimistic hypothesis of an exit from the Nasdaq index by the top or the bottom of the fluctuation corridor delimited by the two limits. .
Our advice: buy a stability Nasdaq issued by Société Générale (code: LU2088808022); deadline: February 19, 2021; limits: 9500/14000 points; price: 9.06 euros; portion: 1.