20% Stock Rally, Rising M&A Activity, Apple's AR Glasses, Incremental Job Cuts And More: Analyst Shares Christmas Wish List For Tech Sector
Tech stocks have been among the worst performers in the current market downturn and investors are hoping that the new year will bring a reversal in sentiment.
Tech stocks have been among the worst performers in the current market downturn and investors are hoping that the new year will bring a reversal in sentiment. Against this backdrop, Wedbush analyst Daniel Ives outlined his Christmas wish list for the sector.1. Abounding M&A News Flow: Ives said the tech sector is ripe for a massive consolidation phase, both on the enterprise and consumer side. See Also: Best Technology Stocks Right Now2. Microsoft Pocketing Activision: Microsoft Corp.'s MSF proposed acquisition of Activision Blizzard Inc. Ives wants the deal to go through, as he sees Activision becoming a key asset in Microsoft's consumer gaming war chest. The fructification of the deal could be a precedence for larger deals in the big tech space, he added.4. Apple Shifting Base Out Of China: Following the iPhone production disruptions, Ives hopes for Apple Inc. AAPL to diversify the production of the gadget out of China. Reversal In Tech Stocks: Wedbush hopes for a 20% rally in the overall tech sector in 2023, with big tech, software and semiconductor stocks leading the charge.7. Strong Cybersecurity Spending: Cybersecurity spending will likely be a pillar of strength despite the softer macro situation in 2023, Ives said. He reiterated that Palo Alto Networks Inc. PANW, CyberArk Software Ltd. Increased Activism: 2023 will bring more activism into the tech sector, with Salesforce.com Inc. CRM likely a major target, Ives said.9. More Flab Cuts: Ives calls for another 8-10% workforce reduction at big techs to manage the downturn forecast for 2023 and adjust to lower growth profiles.Price Action: Technology Select Sector SPDR Fund XLK ended Friday's session down 1.32% at $127.48, according to Benzinga Pro data. The exchange-traded fund has shed about 26% year-to-date.Read Next: Amazon's Rumored Layoffs To Hit Its Once 'Must-Invest' Growth Segments; Analyst Says More Cuts Possible 'If We Go Into A...'