Why this market expert is bullish on tech stocks
Technology stocks have suffered a major blow within the last year but the sector is gaining once again as several industry heavyweights post strong earnings results.
Speaking with BNN Bloomberg’s Amber Kanwar on Thursday, Pete Najarian, co-founder of Market Rebellion, said he believes investors are willing to take more risk and buy into the tech sector as artificial intelligence capabilities improve and promising future growth outlooks.
“I think we are seeing a lot of these stocks really take off to the upside,” he said.
This was seen in shares of Meta Inc., the parent company of Facebook and Instagram, which soared by double digits following the company’s strong first-quarter results. The earnings exceeded analyst expectations and were driven by user growth as well as AI efficiencies. The company also raised its second-quarter forecast.
Najaria called Meta’s quarter something to marvel.
“They are figuring out ways to reinvigorate their product at an efficient pace and they’ve gotten rid of a lot of people,” he said.
Even with a stellar performance and rise in share price, he says the company is being undervalued.
“I look at this (Meta) and I think it’s still cheap— that’s the amazing thing,” he said.
Najaria is also bullish on Alphabet Inc., the parent company of Google, whose earnings revealed a revenue beat driven in part by strong search advertising demand. In addition, Najaria viewed the company’s ability to reveal a profit in its cloud computing operations for the first time ever as the biggest win of the quarter.
“I think they are doing a lot of things right," he said.
He pointed to Alphabet's strong balance sheet, strong cash flow and its aggressive US$70-billion share buyback, as just several reasons as to why he's bullish on the company.
“When you look at the price-to-earnings (P/E) level of this one (Alphabet), it’s still a buyable stock,” he added.
Looking ahead, he is anticipating a strong quarter from Amazon.com, Inc. after Thursday’s closing bells.
Najaria said Amazon is regarded as the king of artificial intelligence services through its Amazon Web Services (AWS) division and is eager to see if they will keep the crown.
“Everybody always just looks at the ecommerce side of it. That’s a piece of it. That’s a big piece of it. But that’s not the profitable piece — the profitable side of it is all coming from AWS,” he explained.
He anticipates future upside to the stock should its latest earnings result reveal continued AI growth in that division.
“There’s a lot of reasons to be very excited about Amazon,” he said.
Speaking with BNN Bloomberg’s Amber Kanwar on Thursday, Pete Najarian, co-founder of Market Rebellion, said he believes investors are willing to take more risk and buy into the tech sector as artificial intelligence capabilities improve and promising future growth outlooks.
“I think we are seeing a lot of these stocks really take off to the upside,” he said.
This was seen in shares of Meta Inc., the parent company of Facebook and Instagram, which soared by double digits following the company’s strong first-quarter results. The earnings exceeded analyst expectations and were driven by user growth as well as AI efficiencies. The company also raised its second-quarter forecast.
Najaria called Meta’s quarter something to marvel.
“They are figuring out ways to reinvigorate their product at an efficient pace and they’ve gotten rid of a lot of people,” he said.
Even with a stellar performance and rise in share price, he says the company is being undervalued.
“I look at this (Meta) and I think it’s still cheap— that’s the amazing thing,” he said.
Najaria is also bullish on Alphabet Inc., the parent company of Google, whose earnings revealed a revenue beat driven in part by strong search advertising demand. In addition, Najaria viewed the company’s ability to reveal a profit in its cloud computing operations for the first time ever as the biggest win of the quarter.
“I think they are doing a lot of things right," he said.
He pointed to Alphabet's strong balance sheet, strong cash flow and its aggressive US$70-billion share buyback, as just several reasons as to why he's bullish on the company.
“When you look at the price-to-earnings (P/E) level of this one (Alphabet), it’s still a buyable stock,” he added.
Looking ahead, he is anticipating a strong quarter from Amazon.com, Inc. after Thursday’s closing bells.
Najaria said Amazon is regarded as the king of artificial intelligence services through its Amazon Web Services (AWS) division and is eager to see if they will keep the crown.
“Everybody always just looks at the ecommerce side of it. That’s a piece of it. That’s a big piece of it. But that’s not the profitable piece — the profitable side of it is all coming from AWS,” he explained.
He anticipates future upside to the stock should its latest earnings result reveal continued AI growth in that division.
“There’s a lot of reasons to be very excited about Amazon,” he said.
