How profitable is technology? Investor demand for digital stocks is expected to increase with several Canadian IPOs scheduled to occur in the coming months. IT stocks now account for 10.3% of the S&P/TSX Composite index’s value, quadrupling their position over the past decade. Many of these companies are not profitable, which poses questions on valuations – what time horizon and expectations are built into tech stock valuations – and how much of the valuation is attributable to “vision”, expected future products via innovation and “intangible capital”?