Fashion

Surging mega tech stocks defined Wall Street’s year and Wedbush Securities said there’s no reason why investors should reposition heading into 2021.

Wedbush has had, what it itself calls, “an unwavering bullish view of tech stocks” during the pandemic.
The first phase saw a focus on cloud, consumer services (Apple, Amazon, Netflix, Disney), cyber security (Zscaler, Crowdstrike, Okta), and WFH (Zoom, Docusign, Slack) vendors, Mr Ives and Mr Backe said.
Apple’s one-year return as of December 24 is 88 per cent; Amazon’s is 78 per cent.
“Now we start to enter the second phase as the economic rebound slated for 2021 will likely super charge the fundamentals and growth trajectories of well positioned tech stocks for the next chapter of this recovery,” the analysts said.
They see a particular positive outlook for cloud and cyber security.
“With today roughly 35 per cent of workloads now on the cloud forecasted to hit 55 per cent by 2022, we believe a further re-rating of the sector and Street numbers moving higher for 2021 will be the 1-2 punch that moves these stocks higher.”