According to Bloomberg’s MLIV Pulse survey of professional and retail investors, the big stock sale of 2022 is far from over as investors in tech stocks prepare to miss profits due to US inflation hitting highs of forty years that could spur a drop of more than 10% in the Nasdaq 100.
Nate Lanxon and Heather Burk for Bloomberg News:
More than two-thirds of the 914 respondents in the MLIV Pulse survey think tech companies’ profits will disappoint the market throughout 2022. Companies like Google of Alphabet Inc. run the risk of advertisers slashing spending as the global economy struggles , while streaming services including Netflix Inc. face an exodus of price-sensitive subscribers with consumers tightening their belts.
The Nasdaq 100 has dropped roughly 31% so far this year, wiping out trillions of dollars in market value … Inflation is driving costs up, as a stronger dollar weighs on profits and the threat of recession is on. increase.
Apple Inc. said it will increase the price of its App Store purchases in Asia and countries that use the euro as the value of foreign currencies plummets against the dollar. Microsoft Corp. lowered its forecast due to currency strength in June …
About a third said they wanted to increase their exposure to technology stocks, just under a third said they would reduce it and the rest said they would stay stable over the next six months. The technology remains attractive on some metrics, such as the current price-to-earnings ratio versus the 10-year average, while companies like Apple are still big money generators. More generally, it’s hard to avoid technology – the largest sector of the S&P 500 with nearly 27%.
MacDailyNews takes: For those who are looking for bargains and safe havens in tech stocks, the fact remains:
Apple iPhone customers are the most recession-proof smartphone buyers. – MacDailyNews, September 7, 2022
Help us support MacDailyNews. Click or tap here to support ours independent technology blog. Thank you!
Buy the Apple Store on Amazon.