Is QQQ Still Worth Buying After the Market's Recent Surge?

QQQNASDAQInvesco QQQ Trust, Series 1·Jun 4, 2026, 09:28 AM·The Motley Fool

Impact

(Medium)

Sentiment

(Positive)

Stonvex AI Summary

The Invesco QQQ ETF has surged 20% year-to-date with a 33% rally since April, posting strong long-term annualized returns of 11-21%. However, the Nasdaq-100's P/E ratio has climbed to 37, approaching historically elevated levels last seen in late 2020/early 2021, raising questions about valuation sustainability.

Positive

■Strong momentum with 20% YTD gain and 33% rally since April demonstrates robust market performance
■Solid long-term track record with annualized returns of 11-21% supports QQQ as a core holding for patient investors
■Positioned in high-growth technology and innovation sectors with ongoing structural tailwinds

Negative

■P/E ratio of 37 is at historically elevated levels last seen during the 2020/2021 tech bubble, signaling potential valuation risk
■Unclear if the current rally has more room to run or if the market has peaked, creating timing uncertainty for new buyers
■High valuations leave limited margin of safety and increased vulnerability to earnings disappointments or market corrections

Original excerpt

The Invesco QQQ ETF has surged 20% year-to-date following a 33% rally since April, with strong long-term performance averaging 11-21% annualized returns. However, the Nasdaq-100's P/E ratio has spiked to 37, near historically high levels last seen in late 2020/early 2021. While QQQ remains a solid long-term investment, investors should monitor valuation levels as it's unclear whether the index has peaked or has room to run further.

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Summary and sentiment are generated by AI for educational purposes. Always verify with the original source before making investment decisions.