The valuations of these stocks make them very appealing.
Technology stocks are ruling Wall Street these days. While the Dow Jones Industrial Average shows an 11% gain in 2025, and the S&P 500 is slightly better at 16%, major tech funds are doing much better, with gains around 25% (at the time of this writing).
The takeaway? If you're going to beat the market this year, you need to be looking at tech stocks . But there are pockets of investors who are spooked by the crazy valuations that some tech stocks have -- many of these companies are priced based on what investors believe their growth will be two or three years down the road. And they are reluctant to buy stocks with a sky-high price-to-sales (P/S) ratio .
However, there are many tech stocks that are much more affordable co