MegaCap-8, P/Es & AI

Are the MegaCap-8 stocks valued precariously high after soaring last year—is that what their Tuesday underperformance suggests? Looking at the eight stocks’ collective performance through a wider two-year lens suggests not. The group’s forward P/E stands about where it did when 2022 began, and its above-market valuation seems justified by its earnings growth outlook. … Also: Despite the S&P 500’s 2023 strength, more than two thirds of its industries’ valuations contracted. Jackie examines recent years’ P/E changes by S&P 500 industry. … And: Evidence of AI’s ability to boost productivity is rolling in, but whether it will displace workers has yet to be seen.