METV - METV: Metaverse Stocks Turns More Expensive Amid Weaker Momentum (Rating Downgrade)
2024-04-18 21:47:52 ET
Summary
- Tech stocks have underperformed slightly in 2024, while the Energy and Utilities sectors have performed well.
- Portfolio managers are becoming bullish, seeing a "no landing" scenario potentially playing out, but that view may be too optimistic.
- The Roundhill Ball Metaverse ETF has seen a drop in assets under management, and I am downgrading the fund amid a higher valuation and weakening momentum.
- I highlight key price levels to monitor on the chart.
The shine has come off once-high-flying tech stocks in recent months. The Information Technology sector is barely outperforming Treasury bills thus far in 2024 while other sectors such as Energy and Utilities have performed well in the last month. It comes as the macro backdrop turns murkier, with recalcitrant inflation fears and concerns that steeper interest rates, now approaching 5%, could damage the Goldilocks soft-landing outcome. ...
METV: Metaverse Stocks Turns More Expensive Amid Weaker Momentum (Rating Downgrade)