By ROSHAN ABRAHAM and SIDDARTH
Profit growth momentum of the so-called Big Six technology stocks could "collapse" over the next few quarters, UBS Global Research strategists said on Monday, downgrading its rating on the mega-cap companies.
Growth in earnings per share (EPS) of the "Big 6 TECH+" stocks - Apple, Amazon.com, Alphabet, Meta, Microsoft, and Nvidia - was projected to decline to 15.5% by the first quarter of 2025, from 42.2% estimated for the same period this year.
Rising bond yields, hotter-than-expected recent U.S. economic data and uncertainty around the Federal Reserve's interest rate cut outlook, have also weighed on these high-valuation stocks.
The Big Six firms are currently trading in the range of 21.6-39 times their forward 12-month price-to-earnings (PE) ratio, whereas the benchmark S&P 500 index trades about 25 times.
Source: The Star
https://www.thestar.com.my/tech/tech-ne ... 4-ubs-says
