The ‘exceptionalism of technology’ is probably over for the stock market: Goldman

For nearly a decade, mega-cap technology leaders like Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) have dominated the U.S. stock market.

But those days appear to be over, according to strategists at Goldman Sachs.

David Kostin, the bank’s chief U.S. equity strategist, told reporters in a call Monday that technology is less likely to outperform by a stronger magnitude than other S&P 500 components in the coming years, adding that the revenue growth gap between companies in the sector and others is expected to be substantially smaller.

“That exceptionalism of technology is arguably behind us,” Kostin said.

For the 10-year period from 2010 to 2021, revenue generated by tech giants compounded annually at a rate of 18%, per Goldman’s data – a return Kostin called “extraordinary.”

“Looking forward, the premium sales growth that was the characteristic most closely associated with mega-cap tech firms for the past decade has compressed dramatically,” Kostin and…

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