Three analysts share their view of the technology, with one saying it is ready for a hard rally, and another naming some “very interesting” stocks in the sector. Chris Watling, CEO of Longview Economics, said the stock market as a whole is “ready to go higher”. “We need a whiff of good news from somewhere to sort of gather the spark,” CNBC Street Signs Europe told CNBC on Wednesday. His comments came after a wild week for stocks that briefly saw the S&P 500 enter a bear market on Friday. The technology heavy Nasdaq Composite – which lost 3.8% over the past week – is already deep in bear market territory, 30% of its highs. “as such [Warren] “You want to be greedy when people are afraid and afraid when they are greedy, so I think it’s time to be greedy from a tactical business standpoint,” Watling added. When asked how to invest in the current environment, Buffett said technology is likely to The best performance in any sector over the next few months.” “Often the general rule is the more that is overcome is the more that aggregates… the indicators we are looking at [tech] He’s hit deep and he’s got to rise hard, and he’s got to excel. “The Nasdaq is down about 27% year-to-date on Friday. Very high growth stocks vs. Big Tech Michael Purves, founder and CEO of Tallbacken Capital Advisors Looking to the future, it’s important to distinguish between tech giants – such as Apple, Microsoft, Alphabet — and the type of stock in the ARKK ETF — “very high growth story stocks.” “Many of them have corrected 70, 80 or even 90% from their peak just over a year ago,” Purvis told CNBC on Friday. Cathie Wood’s ARK Innovation ETF is up over 50% since the beginning of the year. Stocks echo the “2000, 2001 phase” when the dotcom bubble burst. “Yes, everything is correcting now, but [year] The arguments for the year 2000 are really limited to that highly developed segment of the market. “Microsoft, Googles, etc., are being revalued at high interest rates, but let’s not forget [they] It’s arguably the modern form of an electric utility – but with amazing financial metrics, with amazing cash balances to help support earnings growth through forward share buybacks.” Research at Mirabaud Securities said there are some “very interesting opportunities” in the sector in In particular, he noted a shift in tech companies’ operations, with Netflix redundant, Meta temporarily halting hiring, and Amazon saying its warehouses were overstaffed.” Kinds of things are happening now that I think the tech sector is refocusing on it — not chasing revenue at any cost — but is actually looking at managing costs and looking at ways to improve margins,” he told CNBC’s Street Signs Europe on Wednesday. Looking to save money, turn to companies that help manage costs, such as software vendors, Campling added.” Stocks like ServiceNow, Workday, and Qualys are the kinds of companies that can help manage this process in terms of finding where the fat is… that can be removed and can really help drive better efficiencies,” ServiceNow sells cloud-based software, while Workday makes HR technology and Qualys provide security on the cloud.“At the corporate level, especially in inflationary environments…the deflationary economics of technology can really stand out for companies that can provide these kinds of services,” he said of the stocks he called, in an interview with CNBC Month Last year, ServiceNow CEO Bill McDermott described business software as the “world’s most contracting force” as it claimed it helps companies deal with issues such as rising prices and interest rates, as well as supply chain disruptions.—C Channel’s Lauren Finner contributed to this report. NBC, Sarah Main and Hannah Miu.
A woman walks in the rain outside the New York Stock Exchange (NYSE) in Lower Manhattan’s financial district during the outbreak of the coronavirus disease (COVID-19) in New York, April 13, 2020.
Andrew Kelly | Reuters
Three analysts share their forecasts for the technology, with one saying it’s ready for a strong rally, and another stating that some stocks are “very interesting” in the sector.
