Are today’s expensive AI stocks the next market leaders – or just another bubble waiting to burst? History seems to be repeating itself and in relatively short order. The recent rally has led to a sharp increase in the number of companies valued at over 10 or 20 times their annual revenue.

Companies with an enterprise value-to-sales ratio (EV/sales) greater than 10 now account for over 20% of the MSCI World index, levels not seen since the dotcom bubble. The question now is whether these inflated valuations can create lasting value or are destined to unravel under pressure.

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Man Group

London-based Man Group is a technology-empowered active investor across equity, credit, commodities and currency markets, with a firm focus on delivering performance and client portfolio solutions.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.