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What Lies Ahead for Tech Stocks & ETFs?

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  • (1:00) - Big Tech Earnings Continue To Crush Estimates
  • (6:30) - Will Biden’s Tax Plans Impact Tech Stocks?
  • (11:50) - Stocks Investors Should Keep On Their Radar
  • (14:00) - Loup Frontier Tech ETF: LOUP
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Gene Munster, managing partner at Loup Ventures, about the outlook for tech stocks. Gene is a well-known tech expert, and his firm is the index provider for the Innovator Loup Frontier Tech ETF (LOUP - Free Report) .

Big tech companies—Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and Facebook (FB - Free Report) —reported blockbuster results recently, crushing estimates. The combined annual revenue of these five tech giants is about $1.2 trillion, up 25% year-over-year, as they emerged as the biggest beneficiaries of the pandemic economy.

Despite stellar results, these stocks have been under pressure lately and led the market sell-off yesterday, after the hot inflation report. Investors have been concerned about stretched valuations, inflation fears and regulatory risk.

Many investors are rotating into cyclical areas of the market and while the near-term outlook favors cyclicals, investors should not overlook the long-term growth prospects of big tech. Gene still believes that Apple will be the top performing FAANG in 2021, followed by Google, and Netflix (NFLX - Free Report) could be the worst.

LOUP ETF invests in companies that influence the future of technology including artificial intelligence (AI), computer perception, robotics, autonomous vehicles, virtual reality, and mixed/augmented reality.

The fund's holdings include Baidu (BIDU - Free Report) , Himax Technologies (HIMX - Free Report) and Unity Software (U - Free Report) . Some of these frontier tech stocks have stumbled lately on worries about rising inflation and higher interest rates. Is it time to buy the dip in these stocks? Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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