UBS upgraded the technology sector to Overweight on Wednesday morning, but Requisite Capital Management’s Bryn Talkington splashed caution on the analyst firm’s call.
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The call on the broader tech sector as a whole is where she takes issue. Although she feels comfortable holding some tech stocks like Apple Inc., she thinks the trend is still down from current levels.“If you’re going to invest in tech and stay invested, I think, expect these stocks to go lower,” Talkington said.
Amazon.com Inc. is one of the tech stocks she is most worried about after Walmart Inc., and Target Corp. plunged following their quarterly reports on weak margins and logistics issues.
“Amazon ... they’re the epicenter of logistics,” Talkington said. “Amazon being down 5 percent also definitely has me nervous.”
Although Amazon has fallen the furthest among the mega-cap tech stocks, it is still the most expensive of the group with a forward price-to-earnings multiple over 50, according to data from Benzinga Pro.
