The end is nigh for technology stocks, according to Invesco.
As part of his presentation on “meeting the new European environment”, Invesco head of pan-European equities Rory Powe claimed the distinction between technology and non-technology stocks will disappear over the next few years.
The fund manager argued the phrase “internet company” will be used less and less, as investors assume all companies include the net in their business strategies.
Powe says: “As technology becomes more ubiquitous, you have to ask the question: 'Will their be such a thing as a 'technology' company anymore?”
He also claimed Invesco put priority on going beyond investing in the “dot.coms” and looked at “technology enabling” companies, or products which provide content for the new media.
Powe says: “We need to be much more sceptical about the dot.coms. The internet dismantles the barriers to market entry but this is fraught with problems.
“The reason why a lot of internet investment's don't make any money is because they are forced to spend huge amounts on marketing to get their brand known.
“In these circumstances it's the advertising agencies and content makers who are sure to be the winners.”
As well as looking at the visible front end of e-commerce the “back end” should not be overlooked, according to Powe.
He says: “You have to look at what happens behind the scenes of selling and delivering goods and services over the internet. Supply chain companies, including haulage and logistics will benefit from the technology boom.”
Powe made a comparison between the widely-reported tech frenzy and the North American gold rush, saying: “Its not just the people looking for gold we should watch, but also those providing the picks and shovels.”