The Meta liquidation spread to other publicly traded tech companies, Dragging Wall Street deep red before convincing earnings from Amazon, reported after the market close on Thursday, changed the mood.
Inspired by the tech giant’s optimistic results, Asian stocks rose about 1% and Frankfurt-listed Amazon shares gained 12%.
Shares of social media platform SNAP were up more than 50% in premarket trading, having fallen by a quarter in the previous session, in another sign that sentiment towards the sector is stabilising.
At 1108 GMT, the European technology index was down a modest 0.7%, in contrast to the 3.7% drop in the Nasdaq on Thursday and above the rest of the pan-European STOXX 600 index. The Nasdaq was poised to open higher, with futures up 0.7%.
Mark Haefele, chief investment officer of UBS Global Wealth Management, stated that the general outlook for the sector is far from gloomy.
“Overall, the earnings outlook remains strong, and The global tech sector is on track for around 15% earnings growth.”, he wrote in a note to his clients.
“In our base case, we expect valuations to stabilize and the strong earnings growth of the mid-decade reflected in share prices over the next 12 months,” he added.
Source: Ambito
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