Wedbush analyst Dan Ives said in a report that after this year’s slump in technology stocks, it is expected to rebound sharply by about 20% in 2023, as companies will struggle to maintain profitability, while the Federal Reserve (Fed) will end this year. action.
“Amid this carnage, we see opportunities for growth as we believe technology stocks will be up about 20% from current levels by 2023 despite the uncertain outlook for the General Manager and Fed policy,” Ives said. and semiconductor companies will lead the way.”
So far this year, the Nasdaq 100 and Nasdaq Composite, which includes technology stocks such as tech giants Meta (META-US) and Microsoft (MSFT-US ), are down more than 30%. Meanwhile, the S&P 500’s information technology sector fell nearly 29%, making it the index’s third-worst performing sector.
Ives noted that for tech bulls like us, the past year has been a horror show, with tech stocks under intense pressure and many individual stocks falling sharply from their highs.
For example, Meta is forecast to fall 65% this year, Amazon (AMZN-US ) shares have nearly halved to just under $85 a share, and Google parent Alphabet (GOOGL-US ) has fallen nearly 40%.
However, Ives expects well-positioned businesses in 2023 to embark on a “choppy but positive” path that will be a good buying opportunity for long-term investors.
The likes of Meta, Microsoft, Amazon and Alphabet are struggling to maintain profit margins by cutting costs and limiting spending in order to fend off what is widely expected to be an impending recession. Among the cost-cutting actions, the most obvious is the recent wave of layoffs implemented by many technology companies.