The Nasdaq 100 index is down just under 1.0% on Thursday after the U.S. Federal Reserve raised rates by 0.25 percentage point and signalled six consecutive hikes ahead.
Ives: it’s time to own the tech stocks
Interestingly, Wedbush Securities’ Dan Ives sees now as the time to own the beaten down technology stocks. This morning on CNBC’s “Squawk Box”, he said:
It’s a bright green light to own tech stocks. They ripped the band-aid off, now path is there. Tech stocks are most oversold I’ve seen them in five years, especially quality tech; cloud, cybersecurity, enterprise, FAANG names like Apple and Google. The bottom for tech is likely in here.
Ives, however, agreed that volatility was likely to continue in the tech space.
Mahaney is sticking with tech as well
A day earlier, ahead of the FOMC meeting, Evercore ISI’s Mark Mahaney also said that a greater visibility from the U.S. Fed would be a positive for the tech stocks.
If we get confidence in the rate of interest rate increases, then growth equities and tech stocks can work again. So, I’m sticking with Amazon and Google, the two highest quality names I can buy on sale. Particularly Amazon as there’s wonderful fundamental catalysts for it later this year.
Tech stocks have been selling off for nearly three months now, their longest bear market since the global financial crisis of 2008.
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