Why Microsoft, Alphabet, Amazon, Palantir, And Meta Could Rise 15% In 2024, According To Analyst

Benzinga - by Surbhi Jain, .

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

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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 (NYSE:XLK) is down 2.63%. The broad market S&P 500 tracking SPDR S&P 500 ETF (NYSE:SPY) is down 1.16% over the same period.

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

Here’s a glimpse of when these promising tech companies are scheduled to report earnings:

Source: Benzinga Earnings Calendar

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

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.

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Image generated using artificial intelligence via Midjourney.

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