Taking their cues from the volatility that has rattled Big Tech of late, Canadian technology stocks promptly followed their U.S. peers over the ledge during the three-day sell-off that started last week.
Before Wednesday’s rebound, three straight trading days of heavy index losses were concentrated in tech stocks on both sides of the border, with the likes of Shopify Inc. and Open Text Corp. plunging alongside Apple Inc. and Amazon.com Inc.
Coming after an epic rally in software and internet names, this sell-off stoked fears that a reckoning for the red-hot U.S. tech sector was at hand, which would inevitably spread to the Canadian market.
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But even if there is a bubble in tech stocks, that doesn’t mean the bubble is ready to burst. “Bubbles can get a lot crazier and can last a lot longer than I think people recognize,” said Bryden Teich, a portfolio manager at Avenue Investment Management.