Are all growth stocks technology stocks?

These are the five most heavily weighted components of the S&P 500 index, so they have an outsized influence on the overall movement of the stock market. However, not all growth stocks are technology stocks.

What is a growth tech stock?

A growth tech stock is exactly what it sounds like -- the stock of a tech company enjoying rapid growth. Growth tech stocks tend to be comparatively expensive based on valuation metrics, and the companies aren't always profitable. A growth tech stock is highly valued for the company's ability to increase revenue quickly.

What are growth stocks?

Growth stocks are those companies expected to grow sales and earnings at a faster rate than the market average. Growth stocks often look expensive, trading at a high P/E ratio, but such valuations could actually be cheap if the company continues to grow rapidly which will drive the share price up.