Excerpt from the Wall Street Journal quoting DataTrek’s Nick Colas:
….Analysts are cutting down earnings estimates for megacap technology stocks at a faster pace than the S&P 500, but shares still mostly look expensive, DataTrek Research points out in a Thursday note.
Looking at Apple, Microsoft, Google parent Alphabet, Amazon, Tesla, Facebook parent Meta Platforms and Nvidia, here’s what DataTrek found on earnings revisions:
- The average Big Tech company has seen consensus analyst earnings estimates for the third quarter fall 21.4% over the last 90 days and projections for 2023 decline 11.3% on average.
- That compares with the S&P 500’s 5.8% decline in third-quarter estimates and 3.1% drop in 2023 expectations during the same period.
Even with these downward revisions, Big Tech looks expensive versus other large-cap stocks”….
Full article here on the WSJ.