It’s been a bad week for tech stocks. The Nasdaq fell 2.7% on Wednesday and it looks like that slide will continue on Thursday.
So buy the decline before tech stocks move at least 25 percent more this year this year, says veteran tech analyst Daniel Ives of investment firm Wedbush call of the day.
“Technology risk trading has been painful for technology investors this week, as concerns about high valuations, fear of bubbles, exchange turnover, increased returns and a focus on reopening plays are taking center stage.” , said Ives.
But, according to Ives, the digital transformation is just beginning and will last for several years between cloud, cybersecurity, e-commerce and 5G companies. These subsectors are the lifeblood of the technology party, with consumer and business demand catalyzing a “multi-year growth boom” ahead, the analyst said.
Although collaborative software companies like Zoom ZM,
Teams, Slack WORK,
and Citrix CTXS,
will see “moderate growth” until 2022, many executives have told Wedbush that 30% to 40% of employees could continue to work remotely in some way. This will cause companies to “boot Band-Aid and be aggressive” with cloud transformations, Ives said.
See: Analysts say Zoom can continue to thrive in a vaccinated world
Investors should use the current market weakness to ensure that Apple AAPL,
Microsoft MSFT,
DocuSign DOCU,
Zscaler ZS,
Palo Alto PANW,
SailPoint SAIL,
and Nuance NUAN,
they are included in their portfolios, Ives advised.
Across the sector, Wedbush predicts that technology stocks will move at least 25% upwards next year. This will be driven by the big names on Facebook FB,
Amazon AMZN,
Apple, Netflix NFLX,
and Google Alphabet GOOG, father,
GOOGL,
Ives, as well as cloud and cybersecurity actions, despite the recent sale, Ives said.
More generally, Ives said that Uber UBER,
and Lyft LYFT,
– “disruptive technology recovery names”: They remain Wedbush’s preferred “reopening works,” with profitability on the horizon and a massive increase in food delivery.
Do not miss it: Lyft shares rise to highest prices since 2019 after best week for pandemic travel
And while technology regulation is a long-term risk, “it remains a Goldilocks environment for technology actions with the Biden administration,” according to Wedbush. Ives believes President Joe Biden is likely to reduce tensions in the ongoing Cold War between the United States and China, as well as encourage cybersecurity initiatives.
Market bears will come out of hibernation to warn investors that the technology boom and the concentration of oxen are over, Ives said. Wedbush believes this is “a golden opportunity to own the winners of secular technology over the next 12 to 18 months at compelling ratings given some of those sales.”
The buzz
The House of Representatives ended the week after police uncovered a plot by QAnon-linked militias to attack the Capitol, but that did not stop the important legislation on Wednesday afternoon. House Democrats advanced in the Senate the largest revision of U.S. election law in at least a generation, along with a police revision bill, named after George Floyd, who was assassinated during an arrest in May 2020.
On the economic front, initial unemployment claims posted at 8:30 a.m. in the East will be the main figure. 750,000 Americans are expected to show unemployment last week, a slight increase from the previous week’s 730,000. Unemployment claims and factory orders for January are also due to continue this morning, before Federal Reserve Chairman Jerome Powell speaks at the Wall Street Journal Jobs summit at noon.
The SpaceX spacecraft, a prototype for a future mission to Mars, appeared to have landed to make founder Elon Musk proud. But a few minutes after the touchdown was declared a success, it exploded with such force that it went back up into the sky. And there is a video.
The CEO of the Texas power grid has been fired. The grid suffered a fatal failure in a freezing February that left millions without heat or electricity for days in one of the worst blackouts in U.S. history.
The European Medicines Agency, the European Union’s drug regulator, has launched a review of the Sputnik V COVID-19 vaccine developed in Russia.
The Competition and Markets Authority, the UK’s competition regulator, is investigating Apple on the terms and conditions governing developers ’access to the App Store.
Indian online retailer Flipkart, majority owned by Walmart WMT,
is considering a listing in the U.S. by merging with a special-purpose acquisition company, or SPAC, according to a Bloomberg report that said the company could seek a valuation of at least $ 35 billion.
The markets
Dow futures YM00,
point to 120 points, in line with other future ES00 exchanges,
NQ00,
set to continue yesterday’s slide. The Dow DJIA,
it fell more than 120 points on Wednesday along with other indices. UKX European Shares,
DAX,
PX1,
fall after three consecutive days of gains, while major Asian NIK indices,
HSI,
SHCOMP,
all fell more than 2%.
The graph
If you think the bonds have been stronger than usual … you would be right. Our chart for the day, from Marshall Gittler to BDSwiss, shows the volatility of the Treasury market at this time. Gittler shows the MOVE index, which is like the stock market version of the VIX index for stocks. Stock volatility is almost normal, while currencies are slightly calmer than usual.
Random readings
A Tahltan woman from northern Canada cooks a year-old that looks fierce, tastes phenomenal, and feeds a family.
A passenger flight circled Sudan when a clandestine cat attacked the pilot.
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