Market Overview

Pro: Tech Investors Looking To Rebuy Following Post-Election Selloff

Share:
Pro: Tech Investors Looking To Rebuy Following Post-Election Selloff

Technology stocks were the initial victim after Donald Trump won the race to the White House, but the recent decline in notable names could see a reversal.

Speaking as a guest on CNBC's "Squawk Box," Saira Malik of TIAA Global Asset Management suggested that many investors sold technology stocks following the elections to better position themselves to sectors that are believed to be poised to surge during a Trump presidency.

Specifically, investors are assuming the Trump administration will make good on its pledge to heavily spend on infrastructure projects. As such, investors are using technology stocks, especially Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), as a source of funds to buy companies such as Parker-Hannifin Corp (NYSE: PH).

Parker-Hannifin is a manufacturer of motion and control technologies and systems, which Malik touts as being a "high quality company" that should outperform.

Malik Likes Alphabet

Malik further argued the selloff in technology stocks appears to be overdone, and investors are looking to jump back into the space.

Malik stated that she is attracted to Alphabet as online media continues to take market share away from more traditional media sources. She added that the company could grow earnings per share at a rate of 20 percent and reach $50 per share in 2018, and the stock is now trading at a discount to the growth rate.

At last check, GOOG shares of Alphabet were up 2.85 percent at $757.15, while GOOGL shares were up 2.39 percent at $771.21.

Latest Ratings for GOOG

DateFirmActionFromTo
Jan 2021Credit SuisseMaintainsOutperform
Oct 2020MizuhoMaintainsBuy
Oct 2020Credit SuisseMaintainsOutperform

View More Analyst Ratings for GOOG
View the Latest Analyst Ratings

 

Related Articles (GOOG + GOOGL)

View Comments and Join the Discussion!

Posted-In: Analyst Color News Politics Analyst Ratings Movers Tech Media General Best of Benzinga

Latest Ratings

StockFirmActionPT
IIVICitigroupMaintains110.0
DEBMO CapitalMaintains400.0
PRITruist SecuritiesMaintains165.0
SHAKJP MorganMaintains70.0
MABarclaysMaintains380.0
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.
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