Oct 4, 2023
Tech stocks poised to do well in the coming months, money manager says
, BNN Bloomberg
Hot Picks: Finding beaten-down opportunities in tech
VIDEO SIGN OUT
The tech sector has come under pressure with the recent U.S. market selloff, but a money manager expects some of these stocks will rebound in the coming months.
Eric Jackson, founder and president at EMJ Capital, told BNN Bloomberg on Wednesday that despite the market beat down, technology stocks haven’t fared as badly as anticipated.
“It suggests that these stocks have already endured the pain of 2021 and 2022 and even with these sharp upticks in yields, I think these things are poised to continue to do well over the next few months,” he said in a television interview.
Jackson noted that even the slightest drop in U.S. Treasury yields typically prompts investors to buy back into the sector.
“If there’s even a sharp pull back in U.S. Treasuries … everybody rushes back into the tech end of the pool,” he said.
The two small tech names Jackson sees the most potential in, despite both companies being profitless at the moment, are Carvana Co. and Groupon.
He explained that investing in small tech companies comes down to the management team, the interest rate environment and what’s to come.
“On the smaller side, you’ve got to pick and choose,” he said.
Eric Jackson, founder and president at EMJ Capital, told BNN Bloomberg on Wednesday that despite the market beat down, technology stocks haven’t fared as badly as anticipated.
“It suggests that these stocks have already endured the pain of 2021 and 2022 and even with these sharp upticks in yields, I think these things are poised to continue to do well over the next few months,” he said in a television interview.
Jackson noted that even the slightest drop in U.S. Treasury yields typically prompts investors to buy back into the sector.
“If there’s even a sharp pull back in U.S. Treasuries … everybody rushes back into the tech end of the pool,” he said.
The two small tech names Jackson sees the most potential in, despite both companies being profitless at the moment, are Carvana Co. and Groupon.
He explained that investing in small tech companies comes down to the management team, the interest rate environment and what’s to come.
“On the smaller side, you’ve got to pick and choose,” he said.
