Ives: Market Selloff is ‘Golden Opportunity’ for Tech Stocks

On Nov 27, 2021

The stock market’s selloff Friday represents a “golden buying opportunity” for top technology stocks, such as Apple (AAPL) – Get Apple Inc. (AAPL) Report and Microsoft (MSFT) – Get Microsoft Corporation (MSFT) Report, says Wedbush Securities analyst Dan Ives.

The S&P 500 index dropped 2.3% Friday, and the tech-heavy Nasdaq Composite lost 2.2% on news of a new Covid variant coursing the world.

“We view [the stock move] as a clear buying opportunity, given our bullish view of the tech sector set up into 2022,” Ives wrote in a commentary.

“Over the past 18 months our bullish tech playbook has been unchanged. Any time we get 10-year Treasury yield spikes/variant fears/second wave worries, we view this as a buying opportunity to own the tech secular winners.”

“While we are seeing a return to normalcy, a semi-remote workforce environment is here to stay. [That] underscores our thesis that areas such as cloud, cyber security, 5G are robust tech spending areas into 2022.

“Major sell-off days like today create the golden opportunity to own our favorite tech names into 2022. Our Nasdaq 2022 target of 19,000 speaks to our tech bull thesis cycle still in the middle innings of playing out.

“We would own the secular winners in FAANG [Meta Platforms (Facebook) (FB) – Get Facebook, Inc. Class A Report, Amazon (AMZN) – Get Amazon.com, Inc. Report, Apple, Netflix (NFLX) – Get Netflix, Inc. (NFLX) Report and Alphabet (GOOGL) – Get Alphabet Inc. Class A Report],” Ives said. “Apple remains our favorite,” Ives said.