As earnings season gets into swing, how should you think about the highly volatile tech sector?
Find out how Action Alerts PLUS is approaching big tech and more here.
FULL VIDEO TRANSCRIPT BELOW:
SARA SILVERSTEIN: And some people have hoped or feared pre-announcement coming from Apple. Chris, how are you thinking about big tech ahead of earnings?
CHRIS VERSACE: So it's a great question, right? Tech can be a very powerful mover, as we saw in 2022. However, it really was not. It was quite the opposite. When we overhauled the rating system, we really changed around what 1, 2 and 3 is, and we purposely moved big tech, that's Alphabet, that's going to be Microsoft, and that's Apple, into a three category.
So we're waiting really to see a lot more clarity on what the demand picture looks like. Even today, I was reading how IDC, a third party research firm, doesn't see the PC market starting to rebound until 2024. So until we have some a better picture on all of this outlook, whether it's going to be on advertising spend, in the case of Alphabet, whether there's some slowdown in data center, that could be that's a big question for Microsoft, and smartphone demand.
And luckily, we have Taiwan Semiconductor reporting tomorrow morning. We'll get some insight into not only data center but smartphones as well. As that picture solidifies, we'll think about revisiting those ratings, but not until then.