Bloomberg Tech Big Tech Selloff May Signal Turning Point
32 snips
Mar 30, 2026 
Joseph Alagna, founding partner at Buttonwood Funds and SpaceX investor, gives pre-IPO perspective. Denise Chisholm, Fidelity quantitative strategist, brings data-driven analysis of the tech selloff and valuations. Lauren Grush, NASA and spaceflight reporter, files live from Kennedy Space Center on Artemis II and lunar plans. They discuss the tech correction, software valuations, SpaceX IPO prospects, TerraFab and Artemis II.
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Tech Correction Looks Like A Valuation Disconnect
- The Nasdaq 100 slipping into correction can signal a buying opportunity because tech valuations are historically cheap relative to profits.
- Denise Chisholm notes tech is near the bottom decile of relative forward P/E despite operating margins at the 100th percentile, a rare 2% historical occurrence.
Software Shows Rare Profitability Versus Price Gap
- There's a rare disconnect: software profitability is at record highs while valuations have fallen sharply, suggesting downside may be limited.
- Historically this pattern showed up only 2% of the time and sometimes preceded outperformance in semiconductors and communications hardware.
Cheap Valuations Improve Odds But Don't Ensure A Bottom
- Cheap pricing historically boosts odds of outperformance but is not a guarantee; Denise cites roughly 70% odds over a one-year horizon in such setups.
- Even if margins decline or earnings are revised down, much of that risk may already be priced in mathematically.