As earnings season kicked off, Morgan Stanley analyst Morgan Nowak gave Alphabet an overall bullish assessment (Nasdaq: GOOG) (Nasdaq: GOOGL) and Amazon (NASDAQ: AMZN), but not only both companies The tech sector in general may face profit pressure due to rising costs.
As a result, Nowak told CNBC that revenue projections for the tech sector “generally don’t look very good.”
“Alphabet sees margin risk due to adoption over the past few years. Amazon still sees margin risk as it grows to overbuild and this growing AWS situation,” he said. I was.
With recession risks mounting, Novak believes Amazon should focus on core retail profitability by making better use of all the warehouses it built in 2021 and 2022. I’m here. He believes these steps will allow the entire logistics business to be handled efficiently as e-commerce grows. This year’s.
Elsewhere in the technology segment, analysts give equal weight to meta (META).
Looking at stock movements, AMZN has lost about 40% of its value in the last 12 months. Google’s parent company, Alphabet (GOOG) (GOOGL), fell about 35% over the same period. AMZN was up 3.2% while GOOGL was up 0.5% in Friday’s intraday action.
Seeking Alpha contributor Deep Tech Insights takes another look at the tech giant, saying that technicals and valuations present a buying opportunity in Alphabet.
For more on Amazon, see Why SA Contributor Stephen Frampton Assumes “Amazon Will Get Up Again, But No More”.