Good technology stocks at low levels but they do not seduce buyers

With the recent market decline in the market, the judgments of major technology companies have taken off their high levels, while many traders bet this decline can last longer, and modern history supports this view. The prices paid by investors at the expected profits of the so -called ‘seven major’ businesses have reached their lowest level since September this week, as the ‘S&B’ index has dropped by 10% of the last high. However, these judgments are still far from the lower levels they reached in 2018 and 2022 when the profits of technology giants were under pressure, and there are additional factors that increase uncertainty today. “I admit that the judgments look much better than in December, but I don’t think we have reached the bottom,” said Violetta Todorova, the lead research analyst at Leverage shares. She added: “I have the idea of ​​buying shares at this decline, but there is still a lot of blur, and I think things will get worse before it improves.” The risks of the continued decline in the shares of the ‘Seven Great’ have caused the recent sales wave in the ‘Bloomberg’ index, which performs the ‘seven big ones’, namely ‘Apple’, ‘Microsoft’, ‘Inviteia’, ‘Alphabet’, ‘Amazon’, ‘Meta’ and ‘Tesla’, according to the next 12 months. However, there is still a great space for further decline in reaching the levels that these companies scored at their lowest points during 2018 and 2022, which were about 19 times the expected profits. Despite the increase in the market on Friday, the Nasdac 100 index, which is dominated by the technological sector, dropped by 2.5% during the week, falling 11% from the highest level of its record in February. Apple, the largest component of the index, made its biggest weekly loss in more than two years. Trump is ready to bear the losses of shares. This decline represents a remarkable shift, as huge technological companies such as “Alphabet” and “Amazon” recorded new record levels just a month ago, with investors chasing these stocks, amid expected that Trump administration policies will increase economic growth and reduce regulatory liabilities. But these assumptions collapsed, as Trump and other officials made it clear that they were ready to carry losses in the stock market and in short -term economic suffering in exchange for their long -term goals to radically restructure the US economy. In light of this, investors withdrew from high -risk assets and took profits from their investments in the shares of huge technology companies, which were the largest beneficiary during the emerging market that began in October 2022. An opportunity to buy? Over the past decade, investors have become accustomed to buying shares of major technology companies when they later lead to big profits. Even sharp declines, such as those that dropped the “Nasdaq 100” index by 33% in 2022, were excellent purchasing opportunities, as stocks like Mita jumped to new record levels over the next two years. There is a great consensus that major technology companies are still one of the highest quality businesses in the world, thanks to their market credibility, great profitability and liquidity budgets. But the question now is whether these benefits are fully incorporated into the current prices of shares, and whether they are at risk in the case of a slowdown in the economy or the failure of major betting on artificial intelligence in achieving expected returns. As the Nasdac 100 index recorded its highest level before 17 trading sessions, the index was restored in 6 sessions, but none of these profits continued for a long time. The risks carry the opinion of Art Hagan, the main strategy of the market in B. Riley wealth, that “no one is ready to intervene and carries the risk of purchase in the light of this sharp decline. There is a lot of vague, and for this reason we have not yet seen a sustainable refusal,” the risks of the opinion of art Hagan, the main strategy of the market. In Wall Street, analysts recently reduced their expectations for the profits of the seven big years of 2025, although these companies have grown on average in profits that exceeded expectations during the fourth quarter. According to Bloomberg Intelligence -data, the group’s profits will increase by 22%, a 24%decline, which is expected in the middle of January. In 2024, the group recorded a 34%growth. In comparison, the S&P 500 profits are expected to rise by 12% this year, after rising by 10% last year. The group’s shares varied for each of the seven major mode. ‘Tesla’, for example, has always been an exception in the group, it is the smallest, enjoys closer profit margins and traded with high judgments thanks to the great popularity of CEO Elon Musk. Although the share has fallen by 48% over the past three months, the price is still 82 times the expected profits. The second most expensive shares in the group, “Apple”, are now trading at 29 times the expected profits, which is a more moderate assessment. Although “alphabet” is the cheapest as it is traded 18 times the expected profits, it is much higher than the lowest levels in 2022. There is still optimistic about the market that has their arguments. The relative strength index decreased for 14 days for the “Bloomberg” index of the seven greats, some momentum and not for evaluation, to less than 24 recently. This level is the lowest since 2019, and less than the 30 level, which usually indicates that the stock is in an excessive sales area. Despite its recovery to 36, it is still much lower than 70 level, which indicates that the stock is in an excessive purchase area. Strong essentials despite the fog for Todorova, there are the fundamental reasons that make the shares of great technology attractive, despite the sale wave, and the issue is just a time before investors returned to this group. She said: “It is more related to the economic and geopolitical environment than linked to the basics of this self.” She added: “During the coming months we will have a better vision of federal plans and the expected economic growth form, and if the market then starts to recover, I think large technology companies can return to Excel.”