Tags: Andreessen | tech | sector | IPO

Andreessen: Investor Interest in Tech Sector Is as Strong as Ever

By    |   Tuesday, 20 May 2014 01:22 PM

While the recent struggle in technology initial public offerings (IPOs) and the correction of young technology stocks would seem to indicate lessened investor interest in the tech sector, venture capital titan Marc Andreessen of Andreessen Horowitz says that's not the case.

"We have not seen any pullback so far on private investment," he tells The New York Times.

"Actually, what we're seeing is more of the opposite right now. We're seeing a lot more institutional money, in particular from the hedge fund world, crossing over" to invest in the tech sector.

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Andreessen is unphased by the problems encountered by some tech companies seeking IPOs. He notes that in 1997 and 1998, the tech IPO market was upset by the Asian financial crisis only to revive shortly afterward. Of course, tech stocks collapsed in 2000.

In any case, the IPO difficulties now aren't a major issue, Andreessen argues. "The nature of the public market is that it is manic depressive," he notes. "It gets excited, it gets depressed."

The tech-heavy Nasdaq Composite index dropped 9.7 percent from March 6 to April 15 and has rebounded 4.6 percent since then.

Hedge fund heavyweight David Einhorn, chairman of Greenlight Capital, has mixed views about tech stocks. "In general, we are bullish on technology and technology stocks," he said in a recent conference call, Bloomberg reports.

"However, we have identified a number of momentum technology stocks that have reached prices beyond any normal sense of valuation," he stated. "We believe that they are in a bubble and we have shorted a good number of them in what we call the 'bubble basket.'"

Editor's Note: 38 Investments That Profit 96% of the Time (Free Video)

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While the recent struggle in technology initial public offerings (IPOs) and the correction of young technology stocks would seem to indicate lessened investor interest in the tech sector, venture capital titan Marc Andreessen of Andreessen Horowitz says that's not the case.
Andreessen, tech, sector, IPO
293
2014-22-20
Tuesday, 20 May 2014 01:22 PM
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