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Tech Stocks: Is This a Buying Opportunity?

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  • (1:00) - Should You Be Buying During This Market Pullback?
  • (7:45) - Breaking Down Nvidia Earnings: Is Now A Good Time To Buy?
  • (17:30) - Microsoft's Push Into AI: Do They Fit Into Your Portfolio Right Now?
  • (20:00) - Tesla's Recent Weakness: Is This A Buying Opportunity?
  • (22:35) - Is Fintech On Sale or Should You Stay Away?
  • (26:45) - Episode Roundup: MSFT, NVDA, TSLA, PYPL, SQ, COIN
  •                 Podcast@Zacks.com

 

Welcome to Episode #371 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by Zacks Stock Strategist, Andrew Rocco, who is the Editor of Zacks Technology Innovators newsletter and portfolio, to discuss what is going on with technology stocks as second quarter earnings season winds down.

After a big rally in many technology stocks through the first six months of 2023, in August, some tech stocks have pulled back from their highs.

Is this an opportunity to load up or are the bears back?

5 Technology Stocks: Buy or Not?

1.      NVIDIA Corp. (NVDA - Free Report)

Tracey and Andrew recorded the podcast before NVIDIA’s latest earnings report. But Andrew was bullish going into the report and he nailed it.

Shares of NVIDIA had pulled back in early August, but saw gains on the earnings report. However, NVIDIA is “only” up 8.9% over the last month even with the rally into the report.

Are the NVIDIA bulls tiring? Will this create a buying opportunity in NVIDIA this fall?

2.      Microsoft Corp. (MSFT - Free Report)

Microsoft rallied big early in 2023 off the AI excitement. But is that fading? Over the last month, shares of Microsoft are down 6.5%. They’re up “just” 34% year-to-date now.

Microsoft trades at 30x forward earnings, which is lower than earlier this year when it was at 32x, but it’s not exactly cheap.

Is this a buying opportunity in Microsoft?

3.      Tesla, Inc. (TSLA - Free Report)

Tesla had a big rally to start the year and has now cooled off in August. Shares of Tesla are down 10.8% over the last month, but are still up 88% year-to-date.

Is most of the good news priced into Tesla now? Or is this pullback a buying opportunity?

4.      PayPal Corp. (PYPL - Free Report)

PayPal hasn’t been one of those tech stocks that has rallied in 2023. Shares of PayPal are down 14.8% year-to-date. Over the last month, the selling has picked up, with shares falling 16.8% during that time.

PayPal was once a high-flier but over the last 5 years it is now down 15.7%. This is under performing the NASDAQ, which is up 44% during the same period.

Is this a buying opportunity in PayPal?

5.      Coinbase Global Inc. (COIN - Free Report)

Coinbase shares have participated in the big tech rally to start the year. Coinbase is up 108.4% year-to-date. However, shares of Coinbase have weakened over the last month, falling 27% during that time.

Earnings are expected to jump 84.8% in 2023 and another 13.3% in 2024 but are forecast to remain negative. The Zacks Consensus is calling for a loss of $1.80 per share in 2023.

Is the sell-off a buying opportunity in Coinbase?

What Else Should You Know About Technology Stocks in 2023?  

Listen, or watch, this week’s podcast to find out.

[In full disclosure, Tracey owns shares of MSFT in her personal portfolio.]

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