Bummer Tech Earnings, Opportunity?

As I write this, I catch a headline on Bloomberg TV, “Big-Tech Stocks Lose $400 Billion. And They’re Still Expensive.” This week Amazon, Google, and Apple reported earnings. Of the big tech companies, the only one that came out strong was Apple. Are they really expensive? I beg to differ and here’s why. Though they are currently up 7.58% since reporting after hours yesterday, PE ratios are very reasonable.

I believe this is a temporary blip in history. There are too many advantages that technology brings to businesses and consumers and I find it hard to believe tech will stay down for long. Will there be a pause in earnings? Sure, but I believe this is temporary and today’s price points are a really good opportunity to pick up shares for the long term. Google PE ratio is currently 16 and Apple at 24. The median PE for Google is 27 and Apple is 25. It’s like a blue light sale for these companies. I believe those who buy now will be greatly rewarded 5 to 10 years from now. It’s like buying Bank of America during 2009.