As the tech sector braces for its upcoming earnings season, Wedbush Securities analyst Daniel Ives provides a bullish outlook.
Tech Sell-Off - A Compelling Buying Opportunity
He foresees a potential 15% surge in key stocks including Microsoft Corp
Ives views the recent risk-off environment and tech sell-off as a compelling buying opportunity, attributing the market downturn to concerns such as a hot Consumer Price Index (CPI), weak bank earnings, and geopolitical tensions.
Over the past month, the SPDR Technology Select Sector ETF
However, he believes the spotlight will soon shift to the eagerly anticipated tech earnings season, which he expects to be robust across the board.
Q1 Earnings To Set The Stage For Upward Momentum In Tech Stocks
According to Ives, the anticipated strength in tech stocks isn't solely based on multiples but stems from accelerating growth and earnings, surpassing Street expectations. He emphasizes the pivotal role of the upcoming Q1 earnings season in setting the stage for further upward momentum in the tech sector throughout the year.
Here's a glimpse of when these promising tech companies are scheduled to report earnings:
Expectations are high for standout performances from tech giants such as Microsoft, Alphabet, Amazon, Palantir, and Meta. Sectors like software, cybersecurity, digital advertising, and semiconductors, should get particular attention, per Ives.
Other Potential Standouts
Ives also highlights cybersecurity firms like Zscaler Inc
Confidence in the potential of the AI Revolution to drive growth is bolstered by field checks conducted globally over the past month, indicating that monetization in this realm has entered a new phase of accelerated growth.
As investors await the earnings reports, the tech sector remains poised for further appreciation, with Ives projecting a 15% increase in tech stocks for the year.
With software, cybersecurity, digital advertising, and semiconductors taking center stage, the upcoming earnings season could mark a significant milestone in reaffirming the tech sector's growth trajectory for the remainder of 2024.
