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
He foresees a potential 15% surge in key stocks including Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), Amazon.com Inc (NASDAQ:AMZN), Palantir Technologies Inc (NYSE:PLTR), and Meta Platforms Inc (NASDAQ:META).Also Read: OpenAI Launches First Asian Office in Tokyo Amid Microsoft’s Massive AI and Cloud Push in Japan
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
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:
| Company | Stock Ticker | Quarter | Earnings Date |
| Microsoft | MSFT | Q3 | April 25 |
| Alphabet | GOOG, GOOGL | Q1 | April 26 |
| Amazon | AMZN | Q1 | April 29 |
| Palantir | PLTR | Q1 | May 6 |
| Meta Platforms | META | Q1 | April 24 |
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
Ives also highlights cybersecurity firms like Zscaler Inc (NASDAQ:ZS), CrowdStrike Holdings Inc (NASDAQ:CRWD), Palo Alto Networks Inc (NASDAQ:PANW), CyberArk Software Ltd (NASDAQ:CYBR), Check Point Software Technologies Ltd (NASDAQ:CHKP), and Tenable Holdings Inc (NASDAQ:TENB) as potential standouts in the upcoming earnings reports.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.
Read Next: Meta’s Move To Block News Erodes ‘Signals Of Reliability’ As Right-Wing Memes Thrive On Canadian Facebook: Report
Image generated using artificial intelligence via Midjourney.
Latest Ratings for AMZN
| Mar 2022 | Deutsche Bank | Initiates Coverage On | Buy | |
| Feb 2022 | Tigress Financial | Maintains | Buy | |
| Feb 2022 | Credit Suisse | Maintains | Outperform |
View the Latest Analyst Ratings
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.