WSJ: "Big Tech Stocks Still Look Expensive After Earnings Revisions"

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WSJ: "Big Tech Stocks Still Look Expensive After Earnings Revisions"

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.