Market Overview

Should Investors Shift Away From 'Old Tech' Legacy Stocks Into Cloud-Based Platforms?

Share:
Should Investors Shift Away From 'Old Tech' Legacy Stocks Into Cloud-Based Platforms?

Janus Global Technology Fund Portfolio Manager Brad Slingerlend explained why his fund allocated investment dollars out of "old tech" legacy names.

Speaking as a guest on CNBC's "Squawk Alley," Slingerlend said any volatility and disruptions to the macro-economic environment hasn't had any impact on the longer-term trend of companies shifting resources towards cloud-based storage.

"We are seeing significant budgets move away from legacy IT vendors, companies such as Oracle Corporation (NYSE: ORCL), EMC Corporation (NYSE: EMC), HP Inc (NYSE: HPQ) and into cloud stocks."

The fund manager added that cloud stocks that are seeing a benefit include Workday Inc (NYSE: WDAY), ServiceNow Inc (NYSE: NOW), NetSuite Inc (NYSE: N) and salesforce.com, inc. (NYSE: CRM).

Related Link: Argus Reiterates Buy On Salesforce Following Strong Earnings

He continued that an exception to the "old tech" legacy names includes Apple Inc. (NASDAQ: AAPL), and the fund is still long the name although it is being held with a "cautious view" despite the "strength" of the company's installed base of its iPhone users.

Alphabet Versus Facebook

Slingerlend also acknowledged that his fund has a larger position in Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) than Facebook Inc (NASDAQ: FB). He explained that Alphabet has "a lot more optionality" around its core business, especially in the area of artificial intelligence, machine learning, YouTube and mobile.

He added that Facebook's "fastest growth days" are "probably behind them," although it will continue to "significantly" grow in the future.

 

Related Articles (AAPL + CRM)

View Comments and Join the Discussion!

Posted-In: artificial intelligence Brad Slingerlend Cloud VendorsAnalyst Color Long Ideas Tech Media Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
AVXLCantor FitzgeraldReiterates25.0
FIVNWells FargoMaintains210.0
TREXDA DavidsonMaintains95.0
MTBRBC CapitalMaintains166.0
PANWDA DavidsonMaintains450.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com