Why Microsoft, Alphabet, Amazon, Palantir, And Meta Could Rise 15% In 2024, According To Analyst

Zinger Key Points
  • Wedbush analyst Daniel Ives predicts a 15% surge in key tech stocks post-Q1 earnings, citing accelerating growth and earnings.
  • Standout performers expected include Microsoft, Alphabet, Amazon, Palantir, Meta, and leading cybersecurity firms.

As the tech sector braces for its upcoming earnings season, Wedbush Securities analyst Daniel Ives provides a bullish outlook.

Tech Sell-Off – A Compelling Buying Opportunity

He foresees a potential 15% surge in key stocks including Microsoft Corp MSFT, Alphabet Inc GOOGL GOOG, Amazon.com Inc AMZN, Palantir Technologies Inc PLTR, and Meta Platforms Inc META.

Also Read: OpenAI Launches First Asian Office in Tokyo Amid Microsoft’s Massive AI and Cloud Push in Japan

Ives views the recent risk-off environment and tech sell-off as a compelling buying opportunity, attributing the market downturn to concerns such as a hot Consumer Price Index (CPI), weak bank earnings, and geopolitical tensions.

Over the past month, the SPDR Technology Select Sector ETF XLK is down 2.63%. The broad market S&P 500 tracking SPDR S&P 500 ETF SPY is down 1.16% over the same period.

However, he believes the spotlight will soon shift to the eagerly anticipated tech earnings season, which he expects to be robust across the board.

Q1 Earnings To Set The Stage For Upward Momentum In Tech Stocks

According to Ives, the anticipated strength in tech stocks isn’t solely based on multiples but stems from accelerating growth and earnings, surpassing Street expectations. He emphasizes the pivotal role of the upcoming Q1 earnings season in setting the stage for further upward momentum in the tech sector throughout the year.

Here’s a glimpse of when these promising tech companies are scheduled to report earnings:

CompanyStock TickerQuarterEarnings Date
MicrosoftMSFTQ3April 25
AlphabetGOOG, GOOGLQ1April 26
AmazonAMZNQ1April 29
PalantirPLTRQ1May 6
Meta PlatformsMETAQ1April 24

Source: Benzinga Earnings Calendar

Expectations are high for standout performances from tech giants such as Microsoft, Alphabet, Amazon, Palantir, and Meta. Sectors like software, cybersecurity, digital advertising, and semiconductors, should get particular attention, per Ives.

Other Potential Standouts

Ives also highlights cybersecurity firms like Zscaler Inc ZS, CrowdStrike Holdings Inc CRWD, Palo Alto Networks Inc PANW, CyberArk Software Ltd CYBR, Check Point Software Technologies Ltd CHKP, and Tenable Holdings Inc TENB as potential standouts in the upcoming earnings reports.

Confidence in the potential of the AI Revolution to drive growth is bolstered by field checks conducted globally over the past month, indicating that monetization in this realm has entered a new phase of accelerated growth.

As investors await the earnings reports, the tech sector remains poised for further appreciation, with Ives projecting a 15% increase in tech stocks for the year.

With software, cybersecurity, digital advertising, and semiconductors taking center stage, the upcoming earnings season could mark a significant milestone in reaffirming the tech sector’s growth trajectory for the remainder of 2024.

Read Next: Meta’s Move To Block News Erodes ‘Signals Of Reliability’ As Right-Wing Memes Thrive On Canadian Facebook: Report

Image generated using artificial intelligence via Midjourney.

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Posted In: Analyst ColorEarningsLong IdeasNewsTop StoriesAnalyst RatingsTechTrading IdeasDan IvesExpert IdeasStories That MatterWedbush
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