"The Didi IPO/delisting debacle and massive [Chinese] regulatory scrutiny out of left field on almost a daily basis" modified expectations that the likes of Alibaba (BABA), Baidu (BIDU) and JD.com (JD) would continue gaining "investor mindshare," wrote analyst Daniel Ives.
These developments have not only been a "major black eye" for the Chinese tech sector, but create a "nirvana set-up" for FAANG names and the tech sector into the next year, Ives said.
Additionally, the "brewing US/China Cold Tech War" and "recent cyberattacks" are helping shift investor appetite back to US names.
So "while [US] tech valuations appear stretched," Ives said, "the growth prospects around cloud, cyber security, 5G, and the metaverse are unparalleled." Wedbush lists Apple (AAPL) and Microsoft (MSFT) as favorite names; Matterport (MTTR) is the "favorite metaverse play;" and cybersecurity will likely be the "standout sector" with Zscaler (ZS), CyberArk Software (CYBR), Tenable (TENB), Varonis (VRNS), Palo Alto Networks (PANW), SailPoint Technologies (SAIL), and Fortinet (FTNT) included in the Wedbush Cyber Security Basket.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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