Old-economy Vs New-economy

Old-economy stand for  large and well-established companies that contirbute in more traditional industry area and have little investment or involvement in the technology industry. New-economy stocks are greatly involved in the technology area and the more successful companies are able to build value at obviously higher growth rates.

Old- and new-economy stocks vary not only in their business activities but also in the way they are valued by the market. Valuations of new-economy stocks have a tendency to see stronger stability, since their business models are not as stable as old-economy stocks. In the other words, old-economy stocks have a tendency to be valued based on more stable business models and less strong growth expectations.