South African analysts and fund managers’ favourite tech stocks to buy in 2023 include Amazon, Microsoft, and Adobe.
Markets had a good start to the year, with the S&P 500 increasing by 5% and the Nasdaq growing by 10%.
Big tech, which got hammered in 2022, made a strong comeback this year. Meta is up 18%, Amazon increased 17%, Apple jumped 14%, and Alphabet is up 9%.
Microsoft is the laggard in the pack and only increased 1%, partly because of a disappointing outlook for its cloud services division.
This week, Meta (Facebook), Apple, Alphabet (Google), and Amazon will release their latest results.
Many analysts expect Apple to join other mega-cap tech companies in cutting jobs. They also expect good results based on the holiday season.
It raises the question of which international tech companies South African analysts and fund managers are investing their money into.
Adobe – Deryck Janse van Rensburg
Deryck Janse van Rensburg from Anchor Capital said Adobe has strong annuity revenue with a tech element.
“Given the selloff – how much it sold off last year – it is a safe way to play the market. It has bounced off its lows over the last three weeks, and I am happy to buy at these levels,” he said.
Amazon – Viv Govender
Viv Govender, wealth manager at Rand Swiss, picked Amazon as a good stock to buy on 9 January. Since then, the share price increased by 12%.
Govender said Amazon has a strong presence in the retail and cloud computing markets, and the share price got hammered last year. “It is a great buy at current levels,” he said.
Microsoft – Caroline Cremen
Caroline Cremen from Adviceworx said Microsoft has stable revenue from Windows and Microsoft Office, with strong growth prospects from cloud services and LinkedIn.
“This company has the steam to grow in the short, mid, and long term,” she said.