Don’t count out tech stocks just yet.
According to Jefferies, stocks such as Meta Platforms (META), Alphabet (GOOG), and Uber (UBER) could come back strong on cost-cutting and attractive valuations. The firm currently has a buy rating on all three stocks. The firm also reiterated a $155 price target for Meta stock and a $125 target for GOOG.
However, they did cut targets for Uber to $38 from $50.
With regards to META, the stock just refilled its bearish gap at $132.50. Now, if it can break above prior resistance around $138, it could possibly see $175 again. And, according to analysts at Jefferies, “Meta is valued at just 16 times 2023 earnings estimates, which is one of the lowest multiples in the sector,” as noted by Barron’s.
Alphabet may still be a mess, but it’s showing signs of life at double-bottom support. Currently, at $89.01, analysts at Jefferies believe management will cut jobs this year, which should help improve profit margins.
Uber is showing signs of life, too.
After finding double bottom support dating back to October, the stock could test prior resistance around $32 next. Also, according to Jefferies analysts, “Uber’s profitability will rise this year, and for 2024. He projects the company’s revenue will grow about 19% per year through 2025 on the back of ride-hailing and food-delivery growth,” as also noted by Barron’s.
Hopefully, all three can recover even more lost ground in the new year.