Is The Trade Desk and Paypal considered tech?

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Question asked 23/10/2021

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.

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.

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US 10-year Bond Yields

LAST UPDATED 23/10/2021 08:05

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