Here's Every Product Catalyst For The Tech Space In 2016
In a new report, Credit Suisse analyst Stephen Ju focused on the outlook for the tech sector in 2016.
After the extraordinary 2015 outperformance by Amazon.com, Inc. (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB), Alphabet Inc (NASDAQ: GOOGL) and Netflix, Inc. (NASDAQ: NFLX), Ju suggests that capex levels may have peaked headed into 2016.
“We submit that as we look at the aggregate CapEx dollars deployed sector-wide, the incremental dollars (or the first derivative) have already started to moderate, which to us signals a harvest period after an extended period of investment to keep up with increasing global consumer demand for services on the heels of mobile adoption as well as the development and rollout of new products to help monetize against the new traffic,” Ju explains.
For now, Ju believes that investors should be taking advantage of the opportunity to accumulate high-quality names in the tech space. Credit Suisse names Alphabet, Facebook and Amazon its top mega cap stock picks for 2016.
The chart below includes all of the major tech product catalysts the firm is watching this year.
Click to enlarge.
Disclosure: the author holds no position in the stocks mentioned.
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