‘Frothy and Risky’ Rally in Profitless Tech Grows as Fed Eases
Yahoo Finance·2025-09-24 13:52
Bets that the Federal Reserve will continue cutting interest rates have fueled a rally in one of the riskiest corners of the technology sector, raising concerns about a potential reversal in the stocks. A basket of unprofitable tech companies tracked by UBS Group AG has jumped 22% since the end of July, compared with a 2.5% advance for its profitable counterpart and the Nasdaq 100 Index’s 5.9% advance. The run-up has sent the group, which includes lesser-known companies like SoundHound AI Inc. and Unity S ...