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Tech Stocks 'Only Half Way Through Re-Rating Process' - Dan Ives

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Tech stocks are only half-way through a longer-term re-rating process that will continue to spur a broader re-shaping of what constitutes fair valuations.

Speaking with, Wedbush Securities Managing Director Dan Ives said fourth-quarter earnings from the likes of Facebook  (FB) - Get Meta Platforms Inc. Report, Apple  (AAPL) - Get Apple Inc. Report,  (AMZN) - Get Inc. Report, Microsoft  (MSFT) - Get Microsoft Corporation Report and Google  (GOOGL) - Get Alphabet Inc. Report as well as Tesla  (TSLA) - Get Tesla Inc. Report and other known tech and internet names will generally be strong.

At the same time, the ongoing transformation in how consumers use technology - from electric vehicles to cloud-based information storage to cybersecurity to face-to-face communications to 5G, still is a long-term trend that will continue long after the Covid-19 pandemic abates.

Read: Dow Sinks and Nasdaq Tumbles Ahead of Tech Earnings, Fed

"It's going to be a jaw-dropping earnings season over the coming weeks, but I also think some of those transformational technology trends that I've seen over the past 20-plus years covering tech -- specifically in cloud, cybersecurity and e-commerce and what we'll start to see in 5G -- mean that tech stocks up 25%-plus from where we are today continues to be only half a re-rating in tech.

"I also think numbers could go significantly higher and I think this will be another seminal move forward for the tech stocks and the sector," Ives said, noting that investors should also be bracing for a flurry of upward guidance for 2021.

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