Three analysts share their outlook for the technology, with one saying it’s poised for a tough rally and the other naming some “very interesting” stocks in the sector. . Chris Watling, chief executive officer of Longview Economics, said the entire stock market was “ready to recover”. “We just need some good news from somewhere to spark that rally,” he told CNBC’s Street Signs Europe on Wednesday. His comments come after a wild week for stocks that saw the S&P 500 index rapidly enter a bear market on Friday. The tech-heavy Nasdaq Composite – down 3.8% from last week – has been deep in bear market territory, down 30% from its all-time high. “As [Warren] Buffett said, you want to be greedy when people are fearful and fearful when they are greedy, so I think it’s time to be greedy from a tactical trading standpoint,” added Watling when asked about investing. In the current environment, Watling said the technology is likely to perform best in any field over the next few months. “Usually, the general rule of thumb is that what gets beaten the most is what recovers the most. most … The indicators that we review show [tech] he said. Nasdaq is down about 27% so far on Friday. Big Tech Super Growth Stocks Michael Purves, founder and CEO of Tallbacken Capital Advisors, says that looking ahead, it’s important to distinguish between the tech giants – like the tech giants. such as Apple, Microsoft, and Alphabet — and the stock in the ARKK ETF — “stocks with a very high growth story.” “Many of them have corrected 70 or 80 or even 90% from their peak more than a year ago,” Purves told CNBC on Friday. stocks are repeating the “2000-2001 period” when the dotcom bubble burst. “Yes, things are adjusting right now, but [year] 2000 arguments actually rank in that super-growing part of the market. “” Microsoft and Googles, etc., these arguments are being revalued with high interest, but let’s not forget [they] supposedly the modern form of an electric utility – but with incredible financial metrics, with an incredible cash balance to help support earnings growth through future share buybacks “, added Purves. Picking technology stocks Neil Campling, head of technology, media and telecoms research at Mirabaud Securities, said there are some “very exciting opportunities” in the sector right now. now a lot of things are happening now where i think the tech sector is going to focus again – not chasing revenue at any cost – but really looking at cost management and finding ways to improve margins,” he told CNBC’s Street Signs Europe on Wednesday. One option Campling adds for tech companies looking to save money is to turn to companies that help manage costs, such as software vendors. ” he said. ServiceNow sells cloud-based software, while Workday does HR technology and Qualys provides cloud security. The evolution of technology can really stand out for companies that can provide those kinds of services,” he said of the stock he named.In an interview with CNBC last month, the CEO ServiceNow executive Bill McDermott describes business software as “the most deflationary force in the world” because he claims it helps companies deal with issues like rising prices and interest rates, as well as disruptions. supply chain segment – Lauren Feiner, Sarah Min and Hannah Miao of CNBC contributed to this report.
A woman walks in the rain outside the New York Stock Exchange (NYSE) in the financial district in lower Manhattan during the coronavirus disease (COVID-19) outbreak in New York, April 13, 2020.
Andrew Kelly | Reuters
Three analysts share their outlook for the technology, with one saying it’s poised for a tough rally and the other naming some “very interesting” stocks in the sector. .
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