Saudi Billionaire Alwaleed’s Firm Sees U.S. Tech as Overvalued
Saudi Billionaire Alwaleed’s Firm Sees U.S. Tech as Overvalued
(Bloomberg) -- The investment firm of Saudi Arabian billionaire Prince Alwaleed bin Talal is looking for deals in Europe because U.S. assets, particularly technology stocks, are seen as overpriced.
“The markets are really exuberant in the United States versus Europe,” Kingdom Holding Chief Executive Officer Talal Al Maiman said in an interview with Bloomberg TV on Wednesday. “Europe is actually a much better place to invest in at this time.”
Al Maiman adds to a growing list of investors including BlackRock Inc. and Manulife Investment Management that are nervous about U.S. equities hitting all-time highs during an economic crisis and an election year.
Prince Alwaleed, who owns 95% of Kingdom Holding, has stakes in Citigroup Inc., ride-hailing firm Lyft Inc., and Accor SA through the investment firm. He has also made several high-profile technology investments, including $250 million into Snap Inc. and $267 million in music-streaming service Deezer in 2018.
“Everything in my opinion is overvalued due to the huge sums of money that the government of the U.S. has actually helped the markets with,” Al Maiman said.
Kingdom Holding reported its biggest quarterly loss on record in the three months through June on Tuesday as the coronabirus pandemic hit revenues from its hotels and dividends from its investments.
Still, the company, which has about 5% of its shares listed on the Saudi stock exchange, would maintain its dividend payout policy this year, Al Maiman said.
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