The Nasdaq 100 index is now down roughly 15% for the year as investors continue to run away from technology ahead of Fed tightening, but New Street Advisors’ Delano Saporu says he still likes big tech.
Saporu makes a bullish call on Amazon
Amazon.com Inc (NASDAQ: AMZN) that has tanked 25% in two months is his top pick in mega-cap technology names. Explaining his reasons for being bullish on the stock, Saporu said on CNBC’s “The Exchange”:
Amazon focuses on longer-term gains for shareholders rather than short-term profits. Their core eCommerce business is still strong and growing; they’re the market leader in that area. They’re one of the biggest players in cloud. So, AMZN is in a fascinating area being down so much.
According to the CEO of New Street Advisors, Amazon has sufficient cash flow to drive inorganic growth and withstand the inflationary headwinds. Earlier in January, Chris Grisanti also predicted AMZN to outperform this year.
Saporu also likes Microsoft Corporation
Another high-flying tech stock he likes is Microsoft Corporation (NASDAQ: MSFT) that’s scheduled to report its fiscal second-quarter earnings today, after the bell. Saporu said:
If you’re holding MSFT, you should continue to hold. Things could get choppy depending on how the market reacts after earnings. But I do agree with the sentiment that this is still a bullish area. There are these secular trends, particular to Microsoft, that are still super strong.
If the stock is still selling after the quarterly results are out, he added, it’ll be a fantastic opportunity to buy the stock at a discount. MSFT is looking to close the regular session nearly flat ahead of its financial report.
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Source: https://invezz.com/news/2022/01/25/investor-this-big-cap-tech-stock-down-25-is-my-top-pick/