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COMMENT
Opportunity in tech stocks with NASDAQ down over 20% this year? Expected pretty robust comeback in the second half of the year. But he didn't expect S&P to be up 4% and NASDAQ up 10% in one month. Got a bit ahead of itself. In the summer, the institutions tend to back away and it's more the technicians out there, so you can have a lot more volatility. Going into the fall, tech stocks will take the market a lot higher, if not close to where we started at the beginning of the year. Seems right now that there are clear signals of economic softening. Earnings for the second quarter have been OK. Yet central banks are tightening and you're starting to see the effects which, hopefully, will pave the way to a softish landing. That could leave central banks to pivot going into next year. He sees a much better place this time next year, or even into the spring. Indexes are barometers of where the economy should be in 6-9 months. He's modestly bullish.
COMMENT
Which segments of tech would rally the most? High growth, not-so-profitable software stocks are going to have to come around. The hardware side should lead the charge, which will drag the software. Difficult when you look at semiconductors, as they're going through cyclicality with a rebalancing of supply/demand. Doesn't think semis will lead the charge.
PAST TOP PICK
(A Top Pick Sep 09/21, Down 67%) Fallen from grace. Reporting soon. Doesn't expect an earnings miss, as estimates have been revised down so significantly. Topline contraction, severe earnings drop for Q2. Still has a long growth runway. Total addressable market of $200B. A disruptor. Likes the company, but he sold. (Analysts’ price target is $83.50)
Technology
BUY
Same consultancy space as ACN. Does extremely well when businesses have digitalization issues. Out of India. Services are cheaper than NA offerings. Down about only 12% YTD. Beat on top and bottom, raised guidance. Decent 25% runway over next 12 months. (Analysts’ price target is $25.50)
computer software
processing
