Has American investors' enthusiasm for technology stocks declined?
As of Tuesday's close, the Nasdaq is up 22.45% for the year, and the S & P 500 is up 27.43%. If there are no surprises in the remaining three trading days, the Nasdaq may outperform the S & P 500 for the first time since 2016.
Looking back from 2017 to 2020, driven by strong technology stocks, the Nasdaq continued to outperform the S & P 500 by 139.42 per cent, compared with 67.77 per cent.
The popularity of vaccines this year has boosted confidence in overcoming the epidemic, amid fears of reduced demand for telecommuting, home entertainment and takeout orders, coupled with the threat of inflation and a crackdown on high-valued stocks by the Fed's expectations of higher interest rates. the rally in technology stocks stalled for a while.
Some technology stocks are overshadowed.For example, Zoom is down 45.5% this year and PayPal is down 19%.Some technology stocks are still rising, even stronger than last year. For example, Microsoft Corp is up 55% this year after rising 42.5% last year; Alphabet Inc-CL C is up more than twice as much as last year; and NVIDIA Corp is up 132% this year after doubling last year.
Source: Wind, closing as of December 28th, 2021
Related readings:Inventory of 2021 US stocks of high-tech cattle! The chip stock became the biggest winner, NVIDIA Corp doubled it.
What are Wall Street's predictions for the trend of US stocks next year? Will technology stocks continue to strengthen? Which stocks are bullish?
While strong earnings can still support the stock market, profits of S & P 500 companies are expected to grow by just 8.3 per cent next year after rebounding nearly 50 per cent in 2021, according to Refinitiv IBES.
However, top investment banks such as Xiaomo, Goldman Sachs Group and France and Pakistan believe that US stocks will continue to strengthen.The S & P 500 is expected to exceed 5000 next year, with Oppenheimer looking as high as 5330.
Related readings:Can US stocks continue to rise next year? Take a quick look at the latest forecasts of major banks in one article
Some media selected the most popular stocks on Wall Street in 2022 based on analysts' ratings of the three major indexes and 12-month target prices. Among them, the Dow's most popular constituent stocks are$CRM.US (Saifu) $、$Nike Inc (NKE.US) $、$Goldman Sachs Group (GS.US) $、$Visa Inc (V.US) $Nearly 78 per cent of analysts gave Salesforce.com Inc a "buy" rating, with a potential increase of nearly 33 per cent next year.
Among the constituent stocks of the Nasdaq, analysts are optimistic about the South American e-commerce giants.$MercadoLibre Inc (MELI.US) $It is expected to rise by nearly 75% next year. The stock is also a position in "wooden Sister" Cathie Wood. In addition$Amazon.Com Inc (AMZN.US) $、$Alphabet Inc-CL C-A (GOOGL.US) $和$Microsoft Corp (MSFT.US) $It's also on the bullish list on Wall Street.
The S & P 500 stocks that analysts like are mainly concentrated in the energy sector, such as$Devon Energy (DVN.US) $、$Valero Energy (VLO.US) $. It is worth mentioning that Tesla, Inc. is not on the list, but$General Motors Co (GM.US) $Won the unanimous favor of the big bank.
According to Futu Information previously sorted out, in the technology sector, Goldman Sachs Group is most optimistic about Amazon.Com Inc, its 2022 selected stocks list also includes Snap Inc, Meta Platforms and so on.
JPMorgan Chase & Co also said that he is optimistic about Amazon.Com Inc and Meta Platforms. In addition, Netflix Inc, Spotify Technology, Twitter and so on are also on the recommended list.
Related readings:What technology stocks will you buy in 2022? Goldman Sachs Group and Xiaomo are optimistic about these companies.
In addition, some analysts pointed out that meta-universe may continue to be the hottest investment theme in 2022, and chip companies such as NVIDIA Corp, Qualcomm Inc and Advanced Micro Devices Inc are expected to perform brightly.
Related readings:Oculus is hot! Will meta-universe continue to be the hottest investment theme on Wall Street in 2022?
Analysts' target prices for Microsoft Corp, Alphabet Inc-CL C, Amazon.Com Inc, Meta Platforms and NVIDIA Corp for the next 12 months were all higher than current prices, reflecting Wall Street's optimism about the future performance of US tech giants, according to Bloomberg statistics.
Read more:Can American tech giants rise in 2022? A picture to understand the latest Wall Street forecast
It may be better than Apple Inc and Tesla, Inc.. Look at these five technology stocks in 2022.
Raising interest rates may be the biggest concern for technology stocks next year. These stocks are particularly sensitive to higher interest rates, which could put pressure on already high valuations of US stocks. The S & P 500 trades at about 21 times forward 12-month earnings, according to Refinitiv Datastream, above its historical average of 15.5 times.
Andre Bakhos, managing director of New Vines Capital LLC, said: "We may begin to see technology stocks underperform the market, while those undervalued sectors outperform the market." "
For details of the above, please refer to the topic:What to buy in 2022?
Do you think U. S. stocks will continue to rise next year?
Apple Inc, Tesla, Inc. and other large technology stocks how to go?
Which sectors and stocks are you most optimistic about?
Welcome to leave a message for discussion in the comments area.
Edit / lydia, somer