Growth vs value investing performance spread has reached its

Growth vs value investing performance spread has reached its widest in 18 months. Analysts warn a mean reversion scenario could occur if Q4 corporate guidance disappoints for top growth players. Despite its immense size, Amazon's revenue is still growing by double digits -- 12% in the second quarter. That's quite a feat, and with the potential for the AI business, it could keep that up for a while. However, there's some uncertainty in the business due to tariffs and lawsuits, and the market has soured on Amazon stock recently; it's roughly flat this year, despite the ongoing opportunities. The largest international value stock is currently Alibaba BABA , the Chinese internet behemoth. How does an online and mobile commerce business that’s often compared to Amazon end up in a value index, alongside banks, oil companies, and industrials? As I wrote about earlier this year in a China-focused column , Alibaba was one of the world’s 10 largest public companies at the end of 2020. Then came government intervention that wiped billions in market value from Alibaba and its peers. The decline of Chinese internet companies, which were once big growth stocks, helps explain why value investing has triumphed over growth investing in emerging markets in recent years. Samsung Electronics SSNGY is another underperformer for emerging-markets growth. Tech sector’s forward revenue growth rate of 12% outpaces the 4% rate in traditional value industries. Still, dividend payout ratios in value sectors remain appealing for income-focused portfolios.