Tech Street
Tech Street is a term which refers to the technology sector, which divides into subcategories such as semiconductors, software and gaming, personal computers, data storage, telecom, IT services, internet services, and a host of others. Tech Street, as a term, is modeled on the metonymic uses of terms like Wall Street, Bay Street and Dalal Street for large stock exchanges. Tech Street is a term which refers to the technology sector, which divides into subcategories such as semiconductors, software and gaming, personal computers, data storage, telecom, IT services, internet services, and a host of others. Today, the technology sector is a large and diverse grab bag of industries and includes cloud computing companies, television and home-appliance manufacturers, gaming and app companies, internet companies, and hardware manufacturers. Tech street refers to technology stocks, similar to how some may refer to Wall street when referring to stocks in general.
What is Tech Street?
Tech Street is a term which refers to the technology sector, which divides into subcategories such as semiconductors, software and gaming, personal computers, data storage, telecom, IT services, internet services, and a host of others. Tech Street includes companies like Facebook, Google, Apple, IBM, Microsoft, and Texas Instruments.
Understanding Tech Street
Tech Street, as a term, is modeled on the metonymic uses of terms like Wall Street, Bay Street and Dalal Street for large stock exchanges. Whereas those refer to actual streets that house the headquarters of stock exchanges in the United States, Canada and India, respectively, Tech Street does not refer to an actual location.
Financial news organizations use the term Tech Street in headlines to speak about movement or happenings in the technology sector.
Tech Street and the Rest of the Market
Tech Street is an crucial sector in the global market place and the financial markets. In today's world, technology helps facilitate global trade and allows investors to buy and sell securities with the click of a mouse.
Four big tech stocks are FANG, consisting of Facebook Inc. (FB), Amazon Inc. (AMZN), Netflix Inc. (NFLX), and Google-parent Alphabet Inc. (GOOG). Jim Cramer of "Mad Money" coined the acronym, and investors frequently compare the performance of FANG with market indexes.
Like the technology sector as a whole, the movement of FANG stocks largely determine the movement of the market. That is, when FANG goes up, the market goes up. When FANG goes down, the market goes down. FAANG is the same four stocks, with Apple Inc. (AAPL) added in.
Example of How Tech Street Got Out of Hand
Many new and innovative companies are located in the technology field. This means there are plenty of growth stocks in the space, and therefore, technology stocks tend to trade at high price/earnings (P/E) multiples. While a high PE is one thing, it can get out of hand.
During the technology bubble leading into the 2000 stock market peak, many company stocks were skyrocketing, but the company had no sales, no revenue, and not even a business plan. The Nasdaq Composite rose more than 550% between mid-1995 and the 2000 peak. By late 2002 it had fallen by more than 75%.
Tech street companies are known for introducing sexy new products and innovations. In the 1990s, the allure was the internet and how it would change everything. The internet did drastically change things, but a business still needs a business plan and growing earnings to flourish. The companies without these things ceased to exist
Related terms:
BAT Stocks
BAT is an acronym referring to Baidu Inc., Alibaba Group Holding Ltd., and Tencent Holdings Ltd. read more
Bay Street
Bay Street in Toronto is Canada's financial center and is often used as a catchword for Canada's financial industry. read more
Business Plan
A business plan is a written document that describes in detail how a new business is going to achieve its goals. read more
Cloud Computing
Cloud computing is a model for delivering information technology services where resources are retrieved from the internet through web-based tools. read more
FAANG Stocks
FAANG is an acronym for the five best-performing American tech stocks in the market: Facebook, Apple, Amazon, Netflix and Alphabet (formerly Google). read more
FANG Stocks
In finance, the acronym "FANG" refers to the stocks of four technology companies: Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Google (GOOG). read more
Growth Stock
A growth stock is a publicly traded share in a company expected to grow at a rate higher than the market average. read more
Internet Service Provider (ISP)
An Internet service provider or ISP is a company that provides consumers and businesses access to the Internet. read more
Price-to-Earnings (P/E) Ratio
The price-to-earnings (P/E) ratio is the ratio for valuing a company that measures its current share price relative to its per-share earnings. read more
Semiconductor
A semiconductor is an electrical component in consumer and industrial products. Read how they work and how to invest in the semiconductor industry. read more