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TechCheck

Big Tech Pullback Warnings, Plus UBS downgrades Alphabet 6/26/23

TechCheck

CNBC

Disruptors, Cnbc, Investing, Tech, Management, Business, Technology, Faang

4.566 Ratings

🗓️ 26 June 2023

⏱️ 8 minutes

🧾️ Download transcript

Summary

Analysts have been warning of increased concentration in mega-cap tech for a while, with little impact on those names. Is it time now for a pullback? Plus, UBS downgraded Alphabet today to neutral from buy, saying the stock has limited upside and that it may not be the best way to capitalize on the AI wave.

Transcript

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0:00.0

Analysts have been raising concerns about the increased concentration in Mega Cap

0:07.2

tech for a while now with a little impact on those names.

0:10.5

Is now a time for a pullback?

0:12.1

That's the focus of today's Tech Check with.

0:14.0

I'm just walking by.

0:15.0

Enter the shot.

0:16.0

Yeah, I'm just to see Sarah and my old friend Carl.

0:19.0

You know what's important?

0:20.0

People are trying to get their hands around a three trillion dollar market cap for

0:24.8

Apple and they're using all sorts of interesting examples but the immediate

0:28.8

causes what's happening today is a little stability in tech after last week we saw some big declines in some of the

0:35.1

semiconductor names.

0:36.1

This was partly on concerns about higher rates.

0:38.0

Look at this, Intel is down 9% AMD, high single digits.

0:40.9

So there's a little bit of a pullback last week and the big cap tech was in focus.

0:44.9

We have seasonally lower volumes coming after the end of the quarter this week.

0:48.8

Sky high evaluations and prices and the higher rates really putting pressure on tech last week. So take a look here.

0:55.6

Chris Harvey over at Wells Fargo struggling to try to convey what's three trillion dollars?

1:01.8

Well I'm pointing out, you know that's the GDP of France.

1:05.0

That's an interesting way to convey this and I see this a lot now it's a way of just

1:08.4

explaining how big these companies have become. How about Microsoft is bigger than Italy right now, the GDP of Italy, 2.2 trillion

1:16.0

versus 2.5. How about alphabet is as big as Mexico right now? 1.7 trillion versus 1.6 trillion. How about Tesla is bigger than Taiwan?

...

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