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Earnings Potential

All articles tagged with #earnings potential

finance2 years ago

Tech Stocks: A Great Buy Despite Blowout Jobs Report

Despite weeks of selling across the tech sector, there are two catalysts that suggest battered tech stocks could be a great buy. The first catalyst is the blowout jobs report, which did not lead to higher inflation and instead resulted in gains for stocks, including big-cap tech names. The second catalyst is the expectation of positive tech earnings in the upcoming quarter, driven by a rising contribution from AI, better base effects, and pricing power. Analysts are warming back up to tech names, seeing value in their earnings potential and the transformational growth around AI, cloud, cybersecurity, and digital ad dollars.