Despite a brutal sell-off so far this year in the tech sector, Wall Street analysts remain cautiously optimistic about Big Tech stocks, with the majority of experts predicting that companies like Apple, Microsoft andAlphabet can continue to post strong profits in the long-term.
Analysts think big tech earnings will hold up.
Despite tech stocks being hard-hit this year due to surging inflation, rising interest rates and ongoing recession fears, a majority of Wall Street analysts still maintain buy ratings on Apple, Microsoft, Meta, and Amazon.
Bank of America expects Facebook-parent Meta to see ad revenue take a smaller hit than expected, as well as predicting robust growth in Amazon.
After a big sell-off earlier this year, valuations are now looking more attractive and the tech sector is slowing down.
After seeing their stocks rally last week after better than feared results,Netflix andTesla, as well as another train wreck quarter that highlights a digital ad slowdown, Apple and TikTok competition are heating up.
Lindsey Bell, chief markets and money strategist for Ally, says there are some encouraging signs that investors can now buy shares in some of the biggest companies at a more attractive entry point.
A sign of how bullish Wall Street is on some of America's most valuable tech companies is that less than five analysts have a sell rating on Apple.
Big Tech earnings kicks off on Tuesday. Apple and Amazon are reported on Thursday.
David Trainer is the CEO of New Constructs. Cash flows are strong and valuations underestimate the company's ability to generate cash flows in the future, which is the strongest type of stock. He likes the fact thatAlphabet is trading at a much cheaper valuation than its peers and should continue to perform well. As it struggles to retain users amid increased competition from the likes of TikTok, the trainer isn't as confident about the company'sability to sustain profits. He says that his firm is still a big fan of Apple.
The Big Tech stocks have lost a lot of money this year, but have recovered in recent months. Meta has suffered the most losses, with its market value falling by half. Microsoft and Apple are both down more than 20%.
The analysts are divided about whether growth can recover.
There would be a threat to the U.S. economic recovery.
The impact of the China Shutdown has had an impact on the shares of the electric car company.
The analysts are cautiously optimistic after more solid earnings.
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