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Technology stocks are finally showing their first signs of weakness after a four-month rally took their prices and valuations into nosebleed territory, but market watchers don’t believe a bubble is popping.

Instead, as Gene Munster, founder of venture capitalist Loup Ventures LLP, puts it, this correction is leading to a fracturing of the tech market since not all of them are being bludgeoned in the selloff.

For example, the Nasdaq composite index is down about 3.5 per cent from its Monday highs, and names such as Apple Inc. and Alphabet Inc. are in line with those losses. But former market hotshots Shopify Inc., Fastly Inc. and Zoom Video Communications Inc. have each shed between 12 and 19 per cent of their value. Even Inc. is approaching a 10-per-cent loss.

“Many companies in tech are in a bubble phase, but broader tech is not a bubble,” said Munster, whose firm conducts research and heavily invests in the tech sector. “I do think we’ll see large parts of the market that don’t have sustained tailwinds sell off in the next year, (but) a company like Apple should be a $500 stock in the next 12 months.”