The following video is part of our "Motley Fool Conversations" series, in which, Andrew Tonner, technology editor and analyst, and Brendan Byrnes, industrials editor and analyst, discuss topics across the investing world.
In today's edition, they discuss that even though tech investors know well the risk involved with falling in love with the growth stock du jour, they need to remember to take a hard look at these pricy tech stocks, many of which are trading at well over 100 times earnings. It's not that these companies can't make good on their promise, but investors do need to tread carefully before investing. Start by adding them to your watchlist!
Andrew Tonner and Brendan Byrnes own no shares of the companies mentioned here. Motley Fool newsletter services have recommended buying shares of Nuance Communications and Pegasystems. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.