Home News Big Tech Stocks Continue to Thrive in 2023

Big Tech Stocks Continue to Thrive in 2023

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In the first half of 2023, big tech stocks have performed exceptionally well. The likes of Apple, Amazon.com, Nvidia, and others have outperformed the market. As we move forward, the question remains: can these tech giants maintain their impressive gains? Wells Fargo seems to think so, especially when it comes to Amazon.

Wells Fargo analyst Ken Gawrelski recently included Amazon stock (ticker: AMZN) in his firm’s esteemed “signature picks” list. This list comprises stocks rated as “Buy” and are selected by a committee at Wells Fargo based on various factors such as volatility, risk, market capitalization, and liquidity.

The rationale behind this move is quite simple: things are looking up for Amazon. Gawrelski highlights the accelerating growth of Amazon Web Services (AWS) as a key driver for his optimism. Consequently, he has revised his estimate for third-quarter operating income to $5.9 billion, up from $5.6 billion. It’s worth noting that the Wall Street consensus estimate for the same period stands at $5.5 billion, according to FactSet.

Typically, Amazon releases its second-quarter financial results towards the end of July. With this positive momentum building behind AWS, Gawrelski believes that the risk-reward ratio is still favorable for investors during this reporting period. It’s noteworthy that Amazon stock has already surged by approximately 27% over the past three months and more than 50% year-to-date.

As we await Amazon’s upcoming earnings report, it appears that the company’s success story will continue to captivate the market. With its robust performance in AWS and its overall dominance in various sectors, Amazon is poised to maintain its impressive trajectory in the coming months.

Amazon Stock: A Wall Street Favorite

Analyst Gawrelski rates Amazon stock at Buy with a bold $159 price target. And it seems that he is not alone in his optimistic view. Amazon has emerged as a top choice among Wall Street analysts, with a whopping 91% of them giving the stock a Buy rating or the equivalent. In fact, this figure surpasses the average Buy-rating ratio for stocks in the S&P 500, which stands at around 55%.

However, the average analyst price target for Amazon stock hovers around $140, which is slightly lower than Gawrelski’s estimate.

Impressive Performance

In Tuesday’s premarket trading session, Amazon stock witnessed a modest 0.8% surge. Meanwhile, S&P 500 futures also showed a positive trend, with a gain of 0.22%.

It’s worth noting that Amazon is not just any ordinary stock. It has secured its position as the hottest pick on Wall Street when it comes to Buy-rating ratios. This accolade applies to the seven tech stocks that have been driving the bulk of market gains in 2023. These stocks include Amazon, Apple (AAPL), Nvidia (NVDA), Tesla (TSLA), Alphabet (GOOGL), Microsoft (MSFT), and Meta Platforms (META). Among this group, Amazon reigns supreme, boasting an impressive Buy-rating ratio. Following closely behind, Nvidia holds a Buy-rating ratio of 86%. On average, the septet maintains a Buy-rating ratio of roughly 76%. Interestingly, Tesla lags behind, with only 43% of analysts offering a Buy rating on its shares.

An Incredible Start to 2023

All seven of these stocks have enjoyed remarkable success so far this year. Each one has witnessed substantial gains, contributing to an overall average increase of about 88%. Want more jaw-dropping statistics? Well, three of these stocks – Tesla, Nvidia, and Meta – have soared over 100% since the beginning of the year.

It’s important to highlight that Apple and Nvidia also make Wells Fargo’s signature picks list, which comprises approximately 30 stocks.

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