According to Analysts Technology Stocks Will Continue to Increase

According to Analysts Technology Stocks Will Continue to Increase

Is it too late to buy technology shares? Entering the first quarter of June, this was the question investors faced most. The Nasdaq-100 index has increased by 23 percent since Wednesday's closing. It may even tend to crush a wider market, with 50 percent, 100 percent, or more. (When the S&P 500 is evaluated by Wednesday, it is slightly below 1 percent for the year.) This situation can be considered as a remarkable performance in the face of the economic recession, unemployment and wide social unrest caused by the global Covid-19 epidemic. Many investors are wondering if this situation can continue. Transition from home to work system and distance education, closure of many construction markets and similar sized retail stores; accelerated the adoption of cloud-based transactions and internet shopping. This was of course to the benefit of giant companies (Microsoft, Amazon, etc.) in the industry. However, it is a fact that the change in question has disturbed some investors.

“We Believe That Technology Stocks Can Rise Up 20-30 Percent”

Wedbush analyst Daniel Ives said that the rise in technical evaluations this morning has continued significantly. Ives said: “We believe that technology stocks can increase by 20 percent to 30 percent. However, the fear of the second wave will lead to unstable situations in the medium term, that is, in the coming months. Especially as this period of earnings continues, it remains firmly attached to technology for the rest of the year. Therefore, we can say that cyber security and cloud technologies are central and targeted. '' Ives stated that home working system (the closure of this period); we will hear the growth stories of cloud technologies, cyber security technologies and FAANG names for up to 12-18 months. Stating that the race so far has led to visible growth in leading companies in this field, Ives listed these companies as follows: Microsoft, Amazon and Alphabet (GOOGL); Cyber ​​security names such as Zscaler (ZS), Palo Alto Networks (PANW) and Fortinet (FTNT); Zoom Video Communications (ZM), DocuSign (DOCU), Citrix Systems (CTXS) and Slack Technologies (WORK) In the next step, Ives said that Wall Street estimates will move higher, stocks will be re-proportioned to higher floors, and focus will lead to "Continuous growth stories".

Focus on Apple (AAPL) and Microsoft

Stating that the focus should be on Apple (AAPL) and Microsoft, the two biggest technology giants, Ives stated that Apple will make the best 5G and consumer technology recovery move in the second half. Ives said that with the relief of the quarantine period, consumers will start to increase in the second half. Using the best cloud computing choice for Microsoft, Ives also included Redmond's evaluations in its statement. Ives's statement is as follows: “According to Redmond, this cloud change and home working system will remain that way. The company will continue to be a major beneficiary of this trend in its flagship Azure / Office 365 franchise. Today, 33 percent of the workloads in the cloud are preparing to increase to 55 percent by 2022. Looking ahead, we believe that more CIOs have to keep up with this change in their organization can speed up the cloud trend roughly a year. ”

"The Future Progresses on the Ground Prepared by Covid-19"

Increasing the target price on Thursday's Microsoft shares from $ 220 to $ 260, Ives said: “In the quarter of June, we saw a relatively strong cloud deal event around Azure. These current studies from the home environment catalyze even more businesses to provide strategic cloud movement with Microsoft. We see many businesses accelerating their digital transformation and cloud strategies with Microsoft for 6-12 months. It is now moving on the ground prepared by the future Covid-19. '' Overall, in the midst of a soft market, Apple and Microsoft shares are trading at a relatively lower level. Both trade with market values ​​above $ 1.6 trillion and both are below record levels.