Goldman Sachs' basket of unprofitable tech stocks rose 27% in May, outperforming
the Nasdaq-100 by 17 percentage points and posting its best monthly performance
since November 2020. The basket is up 57% year-to-date vs. an 11% gain for the
S&P 500. JP Morgan Market Intelligence, led by Andrew Taylor, warns investors to
be cautious on higher-risk tech names after the rapid rally and recommends
rotating into larger, better-known firms; rising bond yields could hurt smaller,
loss-making companies most. Share buybacks by larger, profitable techs are
aiding a shift toward quality.
