January 31, 2023 (Investorideas.com Newswire) Don’t bet against big tech, despite the current sell-off ahead of a big week of earnings reports from tech heavyweights including Amazon, Apple, Alphabet and Meta.
This is the observation from Nigel Green, the CEO and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations, which comes as U.S. indexes tumbled on Monday as investors await a slew of big-hitter earnings reports, the latest Federal Reserve meeting, and U.S. jobs data.
The tech-heavy Nasdaq declined by 2%, the S&P 500 was down 1.3%, while the Dow Jones shed 0.8%.
Nigel Green comments: “Wall Street is in one of its busiest weeks of the year.
“Whilst all the major U.S. indexes ended lower, the tech-laden Nasdaq recorded a sharp loss as investors brace for quarterly reports from the major tech players, including Meta Platforms reporting results on Wednesday, followed by Alphabet Inc, (Google), Apple, and Amazon on Thursday.
“Concerns are focused on the mass job cuts being made in tech companies, with more than 200,000 workers in U.S.-based tech firms in the last year. There are also ongoing worries about high interest rates, inflation, a hawkish Fed, and slowing revenues.”
But despite the groundswell of fear on Wall Street as markets wait for the earnings reports, the deVere Group CEO says investors shouldn’t “bet against big tech in the longer term.”
He says: “I believe that we need to zoom out to get proper perspective.
“These tech titans – which got carried away during the pandemic era amid soaring revenues and profits and which are now being forced to regroup – still have piles of cash, in some cases hundreds of billions of dollars, and remain enormously profitable.”
In addition, these companies maintain considerable user bases, world-class research and development, plus some of the smartest talent on the planet.
There is, says the deVere CEO, no question that whilst factors such as geopolitical issues, supply chains, and inflation play a crucial part, “the trajectory of global economic growth is increasingly driven by tech.”
He continues: “Artificial intelligence, blockchain, fintech, augmented reality, cryptocurrencies, green energy, health tech, smart devices, data aggregation tools, electric vehicles, these sectors, amongst so many others, underscore that the future is tech.”
The deVere CEO concludes: “Despite the short-term turbulence, the long-term trend of digitalisation hasn’t changed, and won’t, which means there is plenty of reason to be bullish for big tech.”
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deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
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