Tech stocks explode in 2023

Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2023 in New York City.

Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2023 in New York City.Spencer Platt/Getty Images

  • Evercore’s Mark Mahaney says Meta, Uber and Amazon present key buying opportunities.

  • “Meta is the cheapest high-quality tech stock, period,” Mahaney said of his top pick.

It’s been a great year for the tech sector, with the Nasdaq Composite up nearly 25% since the start of 2023.

As the sector moves forward, Mark Mahaney, head of internet research at Evercore ISI, said there are three names in particular that investors should pay attention to.

First on its list is Meta, the parent of Facebook, which Mahaney says will experience a “nice pickup in revenue growth” throughout 2023 thanks to three key offerings.

“Meta is the cheapest high-quality tech stock on the market, period. 14 times GAAP earnings and it has three product cycles that it goes through. The first is the monetization of Reel [program that] they successfully borrowed or stole TikTok. Second, this Click-to-Message product that’s in the market is doing well,” he told CNBC on Wednesday. “Third, I think they’ve just been able to pick up a lot of the advertising signal that they lost when Apple through its privacy changes.”

Amazon stock, meanwhile, has underperformed for the past three years, Mahaney said, adding that he expects the stock price to soar this year.

“It’s the triple bottom thesis. We think the stock here [has had] multiple troughs, margin troughs and revenue growth troughs. If we’re right on that, you might have a hardware rewrite of stock.”

Finally, Mahaney considers Uber to complement its top picks. He has a price target of $75 per share for the rideshare company, about 98% upside from its current levels. He says Uber has three “value catalysts” that could propel its stock higher.

“The first catalyst is that they’re finally going to achieve GAAP earnings status. We’re going to start generating positive GAAP earnings,” Mahaney said. “Second, we think they’ll start buying back stocks. And third, we think they’ll finally hit the metrics needed to be included in the S&P 500.”

Read the original article on Business Insider

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