Diverging market trends and valuation disconnects: Is the North American internet sector’s “cheapness” just an illusion?

According to Jinse Finance APP, Morgan Stanley's latest North American Internet Industry Weekly Report shows that the overall Internet sector rose by about 1% last week, while the S&P 500 fell by 1% and the Nasdaq Index rose by 1% over the same period. There was a clear divergence within the sector: digital advertising led the gains, while e-commerce, travel, and the sharing economy generally came under pressure. The bank maintains an "attractive" outlook for the North American Internet industry and points out that if stock-based compensation (SBC) is considered a cash expense, the sector's real valuation is not actually that cheap.