Earnings season is underway for Big Tech, with several stocks having mixed reactions despite beating expectations. This includes Meta (META), releasing third-quarter earnings Wednesday afternoon, yet seeing shares trend lower Thursday morning after doubling its revenue.
Investors have been watching the sector closely, hoping it will bolster the market which has seen a downturn among rising Treasury yields and these mixed results. The Citadel Accounting & Finance Professor Paul Meeks joins Yahoo Finance Live anchors Brad Smith and Seana Smith to discuss why investors should show restraint and remain cautious on tech and growth stocks, despite all the hype with innovations and investments in AI.
“Think about a company like Nvidia (NVDA), it tripled in the first half of the year, it’s come off a bit, but not even a meaningful correction yet. So, unfortunately, the sector that I follow the closest, technology, could have some more downside risks,” Meeks says. “So my strategy — whether it be Meta today or Alphabet (GOOG ,GOOGL) yesterday — is if you believe in these companies long term… what I’d do is begin to scale into the position and continue to add to my position until we find some solid basis on these stocks.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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