After the decline in technology stocks: Do you now have entry-level opportunities at Apple, Amazon, Tesla & Co.? | 26/11/18

After the sale on the US stock markets and the heavy losses recorded by high-tech companies, the question is whether they are nearing the end or whether they have just become a point of entry.

For the term technology values, many may think of the values ​​listed under the FAANG actions. For a long time, they raised the stock markets in the longest bull market in history. But recent sales have also resulted in a major comeback of the tech giants. But slipping into high flying does not necessarily mean the end of the big technological stocks.

Technology Enterprise Assessment

Tim Mullaney, an expert in business and technology, explains on MarketWatch the factor he believes technology stocks should be valued. The fundamental principle when investing in technology stocks is therefore to look at the underlying technology of the respective society: if it attracts enough attention, this event will overcome the daily noise of valuation. And for the most part, this phenomenon lasts a long time, says Mullaney. The best example is that of FAANG shares, which have long been the driving force behind the longest bear market – but, in the context of current price declines, a redesign of this group of shares seems to be perceptible.

Four giants of technology for investors

Especially Apple has suffered in recent weeks. In early August, the iPhone maker set a record by becoming the first US company to break the $ 1 trillion mark when the stock hit $ 233.47. However, Apple is already far from these highs.
Tim Mullaney, however, does not expect you to drop the Apple action: according to him, the iKonzern could solve much bigger problems than the simple question of whether the latest iPhone has a price sales too high.

And the technical expert also considers Netflix as an updated entry opportunity. Because the streaming service is revolutionizing the film and television industry and has a competent management, according to Mullaney of MarketWatch. His opinion is also supported by several analysts who also see a lot of room for Netflix shares.

In addition, the connoisseur of the business world said that the e-commerce giant, Amazon, had the potential to defend themselves. Here, it focuses on cloud services: this service is constantly growing and offers greater profitability than retail.

Last but not least, the electric car manufacturer Tesla is also part of the series of technological penetration opportunities. Despite recurring problems – whether with model 3 or the head of the company Elon Musk – Tim Mullaney sees a purchase at Tesla. Because, according to him, the future lies in electric cars, which could be even cheaper by 2025 than their competitors working in the fossil fuel sector, he explains to MarketWatch.

At the end of the day, it is difficult to assess the stock performance of these four big tech stocks – but for some time now, these companies have been appreciated by many investors and could well recover from their current correction.

Editors finanzen.ch