As more investors grabbed growth shares, their valuations surged to astronomical levels. Stocks like Shopify (NYSE:SHOP) and Zoom Video Communications are trading at such high multiples that a value investor like Warren Buffett might not even consider them. Looking at the automotive space, Tesla’s (NASDAQ:TSLA) market capitalization exceeds Toyota Motors. Nikola, with no revenue or even a prototype of its upcoming vehicle, commands a higher market capitalization than Ford.
Over the last year, such growth stocks have continued to surge as well as their valuation multiple. Value stocks are even cheaper as more investors ditch value for growth.
View more information: https://marketrealist.com/2020/07/warren-buffett-hasnt-lost-touch-markets-have-changed/