Big Tech stocks: It's time to go bargain hunting, analyst says

The tech sector (XLK) faced a large sell-off in the past couple of trading days, now witnessing a bounce back on Tuesday. While some on Wall Street are concerned about a recession, wondering if the Federal Reserve waited too long to make cuts, others may seem this as a buying opportunity.

Wedbush Securities Managing Director, senior equity research analyst Dan Ives joins Market Domination to discuss the recent sell-off in tech and what investors need to know if they plan on buying the dip.

Ives tells investors, "For Big Tech, these are the buying opportunities... these global sort of white-knuckle moments, you buy high quality, large-cap tech" Ives adds later, "Look at the fundamentals. I mean, we just came through a tech earnings season that was actually pretty robust relative to, I think, Big Tech, cloud, and AI. Look at Palantir (PLTR) last night, just another, you know, monster performance. So we're kind of looking at what are the fundamentals look like. Here in Asia, we don't see any issues in terms of demand and I think we hear this from Nvidia (NVDA) in the next few weeks. These are the opportunities if you're a believer like we are."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video transcript

It's been a rough few days for the markets and Big Tech is not immune, but our next guest thinks now is the time to go bargain hunting for top tech names here for more on this week's move, we got Dan Ives Wedbush Securities Managing director and senior equity research analyst, Dan.

Always good to see you, my friend.

So, uh, let's start big picture, Dan, you look at big Tech and, and many of these names you cover, you know, them very well, Dan and, and you know, from Apple to NVIDIA, you know, they'd be getting whacked.

I'm just curious to get your take.

Big picture Dan on the moves we've seen and whether you think, uh, that selling pressure is it justified, Dan.

Yeah.

Look, it's a great point.

I mean, look, I'm ironically here in Tokyo.

Does the yen carry trade change?

The A I revolution?

No, in it.

Like my point is we look at what's happening from modernization in a once in a 40 year cycle.

This is unique and that's why for big tech, these are the buying opportunities.

That's how we've always navigated these global sort of, you know, white knuckle moments you buy high quality large cap tech and, and thats what we were telling our investors the last 24 48 hours.

And how are they receiving that?

Dan, I'm just curious.

Right, because we do have this turmoil that's been hitting the market volatility, hitting the market, whether it's because of the carry trader or because in some cases, there are some real concerns about the pace of economic growth here reflected by the uptick in the unemployment rate, et cetera.

So are they, are they reassured or is there still a lot of concern out there?

I ju I'd say probably like my conversations over the last week, especially over the weekend and going into yesterday, probably some of the nervous FC ambassador since COVID was in terms of March 2020.

But then you look at the fundamentals.

I mean, we just came through a tech earnings season that was actually pretty robust relative to I think big tech cloud and A I look at pound here last night, just another, you know, monster performance.

So we're kind of looking at what are the fundamentals look like here in Asia.

We don't see any issues in terms of demand.

And I think we hear this from NVIDIA in the next few weeks.

These are the opportunities if you're a believer like we are and this is not ending the tech bull market.

But again, I was, I was getting nervous, you know, hearing from a lot of bears.

I haven't heard from them in 18 months.

It was good to make sure that they were good hearing from them the last week.

Yeah, let's get some other names.

I know you cover.

Uber is another one, right.

Report this morning.

Investors liked what they heard clearly.

Look at the stock.

It's up about 12% right now here to get your thoughts on that name, Dan.

And also, do you think there's a positive read through here to Lyft, which reports tomorrow?

Look, uh this is a stock that I think got just massively hit.

I think some worries about Robo taxi and then just others in terms of the macro look as Julie's question when you talk about indicators of what we're seeing in terms of the consumer and just the overall environment.

I mean, this is very bullish for Uber.

I thought Dora is doing a great job, not just on top line of profitability, you know, and then you look going forward, actually, they're getting more and more market share and that goes back to the Lyft, not necessarily, I mean, obviously a decent read through, but Lyft continues to be that little brother to Uber.

And that that's why we continue to like Uber over Lyft, something else that I know that Uber emphasized here is the autonomous drive, you know, the Robo Taxi business that they're already getting.

And I find this a really fascinating theme here, Dan, because um, you know, Tesla talks all about autonomous driving but there are actually companies doing it and they're not getting as much attention.

And so I thought it was interesting that Uber sort of emphasized that aspect.

Yeah, I look, and I thought that's not coincidental.

I mean, they wanted to make sure, don't forget about us in terms of what's happened.

Uber, look, look at wea, I don't think alphabet's getting any credit in terms of that, you know, in terms of what they're doing.

But look, this all comes down to R attacks today.

1010, I mean, what Musk and I think tests are gonna come out with, I think could be eye popping and I think it's really gonna put more and more pressure on Uber on the overall industry to accelerate.

Now, what I ultimately view is of the autonomous future.

Let me get you Dan, your quick take on, on that Google News.

A a as well, the monopoly ruling.

I'm just curious how you're thinking through that and maybe the effects the impacts you get.

Are you getting questions from clients and about what that means for Apple potentially?

Yeah.

And look, we put a note out basically putting scenarios they'll clear appeal if this will go through the process.

I believe it's gonna be probably somewhere less onerous, you know, where they're gonna try.

I if ultimately they do not win their appeal to do something with Apple in some sort of way that I don't think is gonna be necessarily that money that they pay Apple just going away.

A a and even though this has been there for the last few years we've seen before, from Microsoft to Apple to Amazon to others, I, I do think you gotta be cautious here in terms of the overall regulatory but not necessarily view this as sort of gospel.

In other words.

I think there's a lot of things that could happen here, which is why we didn't view this for alphabet perspective as necessarily the the game changer.

Um So Dan to circle back around to the beginning here.

Um I'm just curious if you're uh we know you're still a bull on, on most of these, these big cap tech stocks.

What brings the market back to stability and rally mode?

Do we have to wait until NVIDIA at the end of the month?

Is there something else that you think could be a potential catalyst?

Yeah.

Well, clearly NVIDIA that's gonna be huge in terms of demand and just overall what we're seeing no different than Microsoft and some of these other things that we've seen from conference calls and then it comes down joy.

It's like show the monetization.

I mean, you look in the Dell they talked about, we should probably see that by the end of this year, potentially into January, you see more and more data points supporting that numbers go higher for 2025 still that soft landing environment.

And I also think, you know, in advertising rebound, you're now gonna start to see that 2nd, 3rd, 4th River Bay, I think Pound here is a good example.

Start to now play out in this market and many have been wanting to get these stocks at lower prices and these are the opportunities on these macro white knuckle moments, in my opinion, Dan, good to see you.

I hope you can get some sleep over there in Tokyo.

Thanks a lot for joining us.

Appreciate it.