Working from home, retail, and consumer-facing technology have all seen their stock prices fall as demand dries up. However, Wedbush analyst Daniel Ives cautioned that this does not imply that the whole industry should be written off by investors. He said that the present economic slump might be an opportunity for investors to enhance their stakes in IT companies.
Throwing a blog post, Ives said, “This tech selloff has been relentless and it’s easy for investors to throw in the towel and further ditch the tech sector.” At this moment we feel that cloud computing, cyber security, and the new digital era are here to stay despite the current economic uncertainty,”
Based on current tech stock valuations, Wall Street predictions for 2023 will fall by another 5% from their present levels, according to the analysts’ base-case scenario. As a result, his top enterprise picks, including Microsoft MSFT +1.09% (NASDAQ: MSFT), Salesforce CRM +2.13% (CRM), and Apple AAPL +1.15%, have a positive risk/reward profile ( AAPL ).
On the cyber-security front, he’s looking at Palo Alto Networks, Zscaler, Tenable Holdings, Fortinet, and CyberArk Software as some of his favorite companies (CYBR). While cloud-based systems are still approximately 40% developed, he expects huge digital growth to benefit cloud-based companies.
But many advise investors to exercise care while seeking bargains in the current sell-off, stating that equities may be headed for greater losses soon. There is no financial crisis; rather, the situation resembles that of the years 2000-2002.
