A basket of never-profitable tech stocks just had one of its best months ever. Goldman Sachs' index of unprofitable tech names surged 27% in May, beating the Nasdaq 100 by 17 percentage points.
Goldman calls it an "up crash" - a sentiment-driven surge so fast it mirrors the speed of a crash in reverse. The firm says further gains may still be ahead, noting that similar baskets have rebounded roughly 66% from prior lows in past cycles.
But JPMorgan is pumping the brakes, warning investors to be cautious with high-risk, speculative tech stocks.
For crypto-adjacent investors, this matters: speculative tech and digital assets often move together in risk-on environments. If the rally fades, both could face similar pressure.