This Chart Shows Why Tech Stocks Are Always Exploding Higher

JP Morgan has a report out on the internet sector and they make a good point that explains a lot of the exploding growth of internet stocks: there just isn’t that much growth elsewhere in the stock market. 

“Our analysis of S&P 500 companies shows investors are willing to pay for outsized revenue growth as it suggests more sustainable long term EPS growth…Only 9% of companies in the S&P 500 are growing revenue above 15% and they trade at a ~60% premium to the rest of the index,” they write.

In other words, one reason why investors are bidding up internet stocks is because there isn’t growth anywhere else, and investors want growth.

Here’s the chart:

internet stock growth chart

Photo: JP Morgan

Very Related: The Scariest Jobs Chart Ever Is Now Scarier Than Ever →

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at