A major selloff in the technology sector may present an opportunity for savvy investors…
Over the last several months, technology stocks have plummeted in value – fueled largely by the U.S. Federal Reserve’s aggressive monetary policy and rate hikes.
As a result, Wall Street money managers shifted their attention away from the high-flying technology industry, exacerbating disappointing earnings and outlooks.
In fact, these institutional investors drastically reduced their exposure to the tech industry, sending the S&P 500 lower by roughly 14% year-to-date.
But even this trend could soon begin to fade…
With the sector’s substantial fall, some experts are suggesting tech stocks are heading closer to “undervalued” territory – as even with recent woes, long-term tailwinds remain for many of the largest names.
This includes Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Meta Platforms (FB).
So, even with the market’s growing fears, the technology sector likely has plenty of growth ahead of it. And it may be on the edge of reversing downward trends.
However, even if a rebound takes time, the shift in focus from growth to value could be a short-term reaction to present volatility rather than a long-term problem for technology stocks.
That’s exactly why many experts remain bullish about firms like Apple (AAPL)…
While the technology giant has suffered some disruptions thanks to China’s ongoing lockdowns – and a slowdown in supply from key partners – the company has continuously navigated the situation better than its peers.
In fact, in the company’s April 28 earnings report, the firm said its earnings per share were $1.52 compared with the estimated $1.43. And its revenue was $97.28 billion, greater than the projected $94.03 billion.
So, while it may see some issues with output moving forward, its iPhone continues to drive strong and consistent sales. And when you couple that with its diversification efforts, it should be able to defend its profit margins – even in this choppy environment.
One stock is causing quite a stir on Wall Street.
It has so much potential, Forbes asks whether it could be the next Apple or Microsoft.
Because of its business model, I personally feel it's more likely the next Amazon.
But it really doesn't matter whether it's the next Apple, Microsoft, or Amazon.
What matters is this:
- The company uses the most advanced technology on the planet.
- Its stock is trading for less than $10 (for now…), and
- Some of the world's biggest investors, including Bill Gates and Cathie Wood, are investing millions into it.
An international conference recently took place in Amsterdam that focused on the breakthrough tech behind this stock, which could explode any day now.