R “Ray” Wang, principal analyst and founder of Constellation Research, told Yahoo Finance Live (video above).
“We were devastated,” he said. “This year has been a bad year…but actually I think 2023 will be a better year…Apple (AAPL) is well positioned for the long term and they have great service.China reopens Yes, the economy will probably get better in the second half of the year. [of the year].”
He also said that some of the biggest names in technology, such as Google’s owner Alphabet (GOOG, GOOGL), Amazon (AMZN) and Microsoft (MSFT), are poised to reap big profits from their growing cloud businesses. I said yes.
“Think of what’s going on with Alphabet, Amazon, and Microsoft, all of whom have a staggering amount of residue in the cloud,” said Wang. “These are his three-year to five-year deals in the cloud for multi-billion dollar Fortune 500 companies.
“These companies are still growing.”
Wang cited enterprise technology as an area of focus, citing companies such as Adobe (ADBE), ServiceNow (NOW) and Workday (WDAY).
“We love enterprise tech stocks,” he said. “If you look at Adobe, ServiceNow or Workday, if you look at these companies, they also have long-term enterprise technology deals, so they’re doing very well going forward. I mean..they’re making a profit…they’re a really strong buy.”
This belief in the future of enterprise technology makes Wang even more excited about the chip market. In 2022, chip makers were slammed on the open market as chip shortages turned into chip oversupply. Still, Wang said chips are too essential across the sector if demand continues to weaken.
“Weakening demand for consumer chipsets is real at this point,” he said. “But all the experiences that will power the future are in the cloud and the internet. We believe the demand for chips is still great.”
In 2022, the tech-heavy Nasdaq is down about 33% at market close on Friday.
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on her Twitter. @agarfinks.
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