Barclays Strategist Comments on Big Tech's Current Market Position
Wednesday, 7 August 2024, 15:33
Overview of Current Market Status
Big Tech stocks are showing resilience after a recent downturn, helping to lift market indexes such as DJI, IXIC, and GSPC. Barclays’ Venu Krishna predicts a cautious yet optimistic recovery.
Barclays Insights on Tech Stocks
- Venu Krishna of Barclays describes Big Tech as being in the 'penalty box'.
- Despite this, companies like Meta and Amazon have shown promising earnings.
- The emphasis is shifting towards the monetization of AI.
Focus on Earnings and Multiples
Krishna warns that as the market pivots toward AI, companies should be valued on earnings rather than high multiples. This trend poses challenges and opportunities for market participants.
Year-End Market Forecast
- Krishna discusses his year-end forecast for the S&P 500.
- Market reactions are anticipated as third-quarter earnings are released.
- The overall sentiment remains cautiously optimistic as tech stocks recover.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.