The technology sector had a difficult 2022 as share prices fell due to slowing revenue growth, higher interest rates and declining margins. This is exemplified on a sector basis by the 30% decline in the iShares US Technology ETF, which includes Alphabet, Amazon, Apple, Microsoft and other “FAANGM” stocks among its top 10 holdings. What caused the decline? Fundamentally, stocks rise and fall on two metrics, valuation (such as P/E ratios) and earnings (EPS), where the P/E ratio multiplied by the EPS = Price. Let us look at each metric separately. Read