Wedbush Securities analyst Dan Ives mentioned in a observe Thursday that traders ought to focus on “oversold” tech stocks and cybersecurity firms as world markets sink after Russia invaded Ukraine.
Tech names will seemingly see “vital ache” amid the selloff Thursday, Ives mentioned. Investors proceed to hunt out secure havens, sending stocks decrease, whereas pushing the worth of oil, authorities bonds and gold larger. But, Ives says traders should not panic, and may as an alternative focus on large-cap tech stocks.
“While every geopolitical shock occasion is totally different and distinctive, our playbook since 2000 has been to make use of these durations of world chaos to purchase the tech winners that we view as manner oversold in a panic-like dump,” Ives mentioned.
Ives listed a lot of expertise names that traders ought to look to, together with Microsoft, Apple, Oracle, Adobe, Salesforce, “in addition to core chip names.”
Microsoft shares slid 1% in early buying and selling on Thursday, whereas Apple fell greater than 2% and Oracle shares have been flat. Shares of Adobe and Salesforce rose 1%.
The cybersecurity sector might additionally see a carry because of the invasion, Ives mentioned. Experts previously warned of attainable cyber ramifications from the battle. And on Wednesday, a number of Ukrainian authorities web sites were knocked offline on account of a mass distributed denial of service assault.
“With considerably elevated cyber assaults now on the horizon, we consider added development tailwinds for the cybersecurity sector and well-positioned distributors needs to be a spotlight sector for traders throughout this market turmoil,” Ives mentioned.
Palo Alto Networks, CrowdStrike, Zscaler and Tenable have been amongst a number of “core cybersecurity names” Ives almost certainly to learn from heightened threats of cyberattacks.