Volatility in Technology Highlights Importance of Selectivity

By Alan Tu, CFA, T. Rowe Price Portfolio Manager KEY INSIGHTS The recent pullback in technology stocks appears to be due to profit taking after a strong run pushed up valuations. We believe that long-term, secular growth trends creating value in the technology sector remain intact and have accelerated during the pandemic. The potential for further volatility could favor stock pickers with deep knowledge of individual tech companies and business models.