Is The Trade Desk and Paypal considered tech?
Hi James and the team, Is Tradedesk and Paypal considered tech and will they be affected by interest rates rising? Thanks, Kim.
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Answer
Hi Kim,
A great question on a number of levels:
- Firstly MM does believe bond yields will rise into 2022 leading to general underperformance for the growth sector e.g. tech and healthcare.
- However within this space many companies will continue to grow and they will perform however the sector or market moves albeit potentially in a more subdued fashion at times.
- The biggest losers will be stocks who carry high valuations and don’t deliver growth, they are likely to be hammered if yields rally.
Moving onto the 2 stocks you mentioned, yes in broad terms with The Trade Desk (TTD US) potentially more vulnerable due to its magnificent rally over the last 18-months but for now it looks excellent while PayPal (PYPL) is more of a concern with talk they could buy Pinterest.
