Analyst: Buy this dip in Apple stock before it’s out of reach

It’s been a bad week for tech stocks, including Apple stock. The Nasdaq tumbled 2.7% on Wednesday and the slide looks set to continue on Thursday. So, veteran tech analyst Daniel Ives of investment firm Wedbush Securities says to buy the dip before tech stocks move at least 25% higher this year.

Analyst: Buy this dip in Apple stock before it's out of reachJack Denton for MarketWatch:

“The risk-off trade for tech has been a painful one for tech investors this week as worries around high valuations, bubble fears, rotation trade, rising yields and a focus on reopening plays take center stage,” Ives said.

But, according to Ives, the digital transformation is just getting started and will last a number of years among companies in cloud, cybersecurity, e-commerce and 5G. These subsectors are the life of the tech party, with consumer and enterprise demand catalyzing a “multiyear growth boom” ahead, the analyst said.

Investors should use the current market weakness to ensure that Apple, Microsoft, DocuSign, Zscaler, Palo Alto, SailPoint, and Nuance are included in their portfolios, Ives advised.

Across the wider sector, Wedbush predicts that tech stocks will move at least 25% upward in the next year. That will be driven by big names Facebook, Amazon, Apple, Netflix, and Google parent Alphabet, as well as cloud and cybersecurity stocks, despite the recent selloff, Ives said.

MacDailyNews Take: Better to buy low than high, we always say!

“A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” — Warren Buffett

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