Goldman Sachs pointed to four “attractive” buying opportunities in the tech sector after a mixed first-quarter earnings. Stocks offer solid top growth and are more likely to dominate amid the current volatile market landscape, the bank said. After years of beating the market again, tech stocks have endured a massive sell-off this year. The sector has taken the brunt of the market swings away from growth and become valuable names, due to the potential for a steep rate hike cycle – making future earnings on stocks less attractive growth – has gone home. A flurry of missed first-quarter earnings from Netflix, Google’s parent Alphabet and Amazon, along with warnings of further difficulties added to market anxiety. The tech-heavy Nasdaq Composite posted a seventh straight weekly loss last week – the index’s longest losing streak in 21 years. But there is still a lot of opportunity in this area, according to Goldman Sachs. “We see the most compelling buying opportunities in our largest capitalization range as these companies offer a solid top-growth mix in the current environment that is highly likely to outperform.” through every global recession (with their proven scale status) and, in many cases, talked about managing the mix of investments and potential payback to better match with the current investor focus,” Goldman analysts, led by Eric Sheridan, said in May. 20. Read more Technology investor Jim Breyer says he’s adding Microsoft into weakness and will hold it for many years These are the cheapest tech stocks right now after a massive drop in the sector. [the] volatile environment. Analysts’ “top pick for 2022” is Amazon, which they say is exposed to “a multitude of” broader growth trends including advertising, cloud computing and media consumption. pine. Amazon demand remains strong, according to the bank, while much of the e-commerce sector has seen demand weaken. The bank has a stock price target of $3,700, which closed at $2,221.55 on May 26 – a potential 66.6% gain. Goldman also likes ride-hailing company Uber. While the company’s better-than-expected results have not resulted in a massive increase in the company’s stock price, Goldman believes the company has the potential to achieve top-line growth of more than 20% over the next three to five years from platform access to local transportation and commerce, Sheridan said. The bank has a $55 price target for the stock, which closed at around $23 on May 26, representing a potential upside of 139%. Facebook’s parent company, Meta, has also made it to Goldman’s list. “We see a much better landscape for growth and profit margin stability in [the second half of 2022] Sheridan said. Goldman’s $300 price target on Meta suggests a potential 57% upside from the stock’s closing price of around $191 on May 26. Outside of Goldman’s list is Alphabet. The bank considers the company’s digital advertising platform “powerful” and believes that the company’s other units, such as Google Cloud and “Other Bets”, can scale and achieve With sustained earnings growth in the coming years Goldman has set a stock price target of $3,000. Shares of Alphabet closed at $2,155 on May 26, suggesting that the stock still has room for another 39.2% gain, according to Goldman’s estimates.
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Goldman Sachs named four “attractive” buying opportunities in the tech sector after a string of mixed first-quarter earnings. Stocks offer solid top growth and are more likely to dominate amid the current volatile market landscape, the bank said.
