Why Does Inflation Hurt High-Growth Tech Stocks?

·3-min read
Why Does Inflation Hurt High-Growth Tech Stocks?

Inflation, which is soaring across the world and hit a 31-year high in the U.S. in October, is generating fierce headwinds for many tech companies. To separate the winners from the losers, investors should understand exactly how inflation affects tech companies. Companies that don't have enough pricing power to pass those costs on to their customers will likely see their gross and operating margins shrink.

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