Analyst Daniel Ives sees buying opportunities amid the carnage.
From a note to clients that landed on my desktop Tuesday:
With the carnage in tech stocks seen over the past week including today across the space from FAANG names to a surge of selling across the enterprise space and cloud names abound, many investors are just helplessly watching their red screens and gains for the year dissipate in a matter of days. With many of our tech stocks down 15%-20% this week and some of the high flyer cloud names with lofty multiples getting cut by 30%, we continue to believe the fundamental worries around softness into 2019 are unfounded and now is not the time to go defensive, panic, and retreat mode despite the noise and macro/China worries…
On Apple, while supply chain data points are negative and bear sentiment on the name is as negative as we have seen on the Street in roughly three years given soft XR data points, our long standing way to play Apple during these “white knuckle periods” is buy it aggressively when the PE multiple is 12x at the trough of its range as we still believe higher ASPs and 350 million iPhones in the window of an upgrade opportunity over the next 12 to 18 months makes FY20 numbers firm with $15 of earnings power and $50 billion+ of services revenue.
My take: No mention of his Street-high $310 price target. See: Look who’s underwater now.
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