Wedbush analyst Dan Ives advised investors in a new report that even if work-from-home (WFH) stocks, including Zoom (ZM-US)、Docusign (DOCU-US), etc., which have now fallen by more than 70%, should still avoid buying these types of stocks that have benefited from the epidemic.
Ives said it will be harder for battered tech stocks to bounce back as the market goes into risk-off mode. At present, there is no sign that the current risk aversion atmosphere will fade away soon. The Federal Reserve (Fed) will continue to tighten monetary policy by raising interest rates and shrinking its balance sheet. The market generally expects the Fed to announce an increase on Wednesday (4th). Interest rate 50 basis points (2 yards).
Ives: “The size and speed of the tech sell-off this year has been bigger and faster than expected, driven by recession fears and the Fed’s easing of policy easing. Tech stocks have halved, causing great pain for the bulls.”
Ives pointed out that some tech stocks have pulled back from their highs, which doesn’t mean investors should buy. In his view, including Netflix (NFLX-US), Zoom, DocuSign and other WFH stocks will continue to be under pressure, and Docusign in particular may see growth struggles, but the stock price doesn’t reflect that fact.
Despite being bearish on WFH stocks, Ives remains positive on cybersecurity and cloud computing stocks. “Software, semiconductors, cybersecurity and other sectors are still poised to move higher as part of the digital transformation,” Ives said.
Shan Darby, an analyst at Jefferies, said that it is not yet time to discuss buying Meta, Netflix and Amazon on dips, and he prefers MANG, Microsoft (MSFT-US),apple (AAPL-US), Nvidia (Nvidia) (NVDA-US)、Alphabet(GOOGL-US)。