TECH - Beyond Big Six: Why Choose Non-Cyclical Sector ETFs? | Benzinga
UBS Global Research has revised its outlook for the "Big Six" tech companies — Apple, Amazon, Google-parent Alphabet, Meta, Microsoft, and Nvidia — from "Overweight" to "Neutral" according to a recent statement by Jonathan Golub, the chief U.S. equity strategist at UBS Investment Bank, according to a source.
In his explanation, Golub said that the downgrade is not based on rich valuations or concerns about the sustainability and momentum of the AI technology. Instead, he pointed out tough comps compared to the pandemic period and cyclical pressures as the headwinds. Golub highlighted that the rapid earnings growth recorded by these tech giants over the past year is now ebbing.
Will Easy Comps Faced by Big Tech Go Away in 2025?
UBS indicated that the pandemic initially triggered increased demand for PCs, online shopping and gaming, thus helping those tech stocks' earnings. A reduction in costs and easy comparisons boosted these companies' ...