Shoppers wear protective masks outside an Apple Inc. store at the Americana at Brand shopping mall in Glendale, California, on Thursday, May 6, 2021.
Bing Guan | Bloomberg | Getty Images
After a shellacking earlier in the week, investors are starting to nibble at tech stocks again. Here are some ideas on where to look.
Technology names are getting wrecked in the last month, with the Nasdaq Composite dropping nearly 6% since mid-April. The index is more than 7% off its 52-week high. However, the Nasdaq was rebounding on Thursday, adding 1%.
The tech sector has underperformed amid hotter inflation readings raising concerns about their lofty valuations. Also investors could be taking profits in their biggest tech winners since the pandemic lows and rotating into things more leveraged to the reopening. Plus, the threat of higher capital gains taxes likely isn’t helping sentiment.
Despite the fraught environment for the growth sector, Wall Street analysts are getting increasingly bullish on some select tech names.