QQQ   352.15 (+1.20%)
AAPL   179.83 (+1.46%)
MSFT   331.47 (+0.94%)
META   273.47 (+3.31%)
GOOGL   123.28 (+0.33%)
AMZN   123.17 (+2.15%)
TSLA   207.11 (+1.56%)
NVDA   398.38 (+5.30%)
NIO   7.63 (+1.33%)
BABA   83.62 (+5.12%)
AMD   120.16 (+1.65%)
T   15.80 (+0.45%)
F   12.11 (+0.92%)
MU   69.19 (+1.45%)
CGC   0.83 (-0.50%)
GE   104.85 (+3.27%)
DIS   88.58 (+0.70%)
AMC   4.61 (+2.44%)
PFE   38.00 (-0.05%)
PYPL   63.15 (+1.87%)
NFLX   404.79 (+2.42%)
QQQ   352.15 (+1.20%)
AAPL   179.83 (+1.46%)
MSFT   331.47 (+0.94%)
META   273.47 (+3.31%)
GOOGL   123.28 (+0.33%)
AMZN   123.17 (+2.15%)
TSLA   207.11 (+1.56%)
NVDA   398.38 (+5.30%)
NIO   7.63 (+1.33%)
BABA   83.62 (+5.12%)
AMD   120.16 (+1.65%)
T   15.80 (+0.45%)
F   12.11 (+0.92%)
MU   69.19 (+1.45%)
CGC   0.83 (-0.50%)
GE   104.85 (+3.27%)
DIS   88.58 (+0.70%)
AMC   4.61 (+2.44%)
PFE   38.00 (-0.05%)
PYPL   63.15 (+1.87%)
NFLX   404.79 (+2.42%)
QQQ   352.15 (+1.20%)
AAPL   179.83 (+1.46%)
MSFT   331.47 (+0.94%)
META   273.47 (+3.31%)
GOOGL   123.28 (+0.33%)
AMZN   123.17 (+2.15%)
TSLA   207.11 (+1.56%)
NVDA   398.38 (+5.30%)
NIO   7.63 (+1.33%)
BABA   83.62 (+5.12%)
AMD   120.16 (+1.65%)
T   15.80 (+0.45%)
F   12.11 (+0.92%)
MU   69.19 (+1.45%)
CGC   0.83 (-0.50%)
GE   104.85 (+3.27%)
DIS   88.58 (+0.70%)
AMC   4.61 (+2.44%)
PFE   38.00 (-0.05%)
PYPL   63.15 (+1.87%)
NFLX   404.79 (+2.42%)
QQQ   352.15 (+1.20%)
AAPL   179.83 (+1.46%)
MSFT   331.47 (+0.94%)
META   273.47 (+3.31%)
GOOGL   123.28 (+0.33%)
AMZN   123.17 (+2.15%)
TSLA   207.11 (+1.56%)
NVDA   398.38 (+5.30%)
NIO   7.63 (+1.33%)
BABA   83.62 (+5.12%)
AMD   120.16 (+1.65%)
T   15.80 (+0.45%)
F   12.11 (+0.92%)
MU   69.19 (+1.45%)
CGC   0.83 (-0.50%)
GE   104.85 (+3.27%)
DIS   88.58 (+0.70%)
AMC   4.61 (+2.44%)
PFE   38.00 (-0.05%)
PYPL   63.15 (+1.87%)
NFLX   404.79 (+2.42%)

The Dogs Of Tech: It’s Time For A Bite Of These Stocks

Key Points

  • Meta Platforms is down 50% and recently hit bottom. 
  • Amazon is down a greater 54% and shows signs of a bottom. 
  • Salesforce.com is a force to be reckoned with and may hit bottom soon. 
  • 5 stocks we like better than Amazon.com

The Dogs Of Tech: It’s Time For A Bite Of These Stocks

2022 has been challenging for big tech. While the QQQ NASDAQ Index tracking stock NYSE: QQQ is down more than 33% from its post-pandemic peak names like Facebook (cough Meta Platforms (NASDAQ: META)), Amazon (NASDAQ: AMZN) and Salesforce.com NYSE: CRM are down more than 50%, and the figure may grow before the bottom is indeed hit. Nevertheless, the takeaway is that analysts and institutions are still buying these names, which suggests they're a smart buy for average investors.

The chatter is that many of these beaten-down names are set up to rebound in 2023 and should be on your watchlist regardless of the near-term outlook. There will be a clear signal when the market is ready to rally at the prices these stocks offer and the level of ownership in these names. 

The Tide Has Turned For Meta (Facebook)

If the analysts can be used as a guide, the tide has already turned for Meta NASDAQ: META. The Marketbeat.com consensus sentiment and price target are down on a YOY basis, but the takeaway is all bullish. The consensus sentiment is firm at a Moderate Buy with a price still 40% above the current price action.


In addition, the most recent analysts' commentaries include price target increases and even a few upgrades with the stock set at a firmer Buy/Outperform level. The shift in sentiment toward social media caused a reality check in the market that has hit bottom. Assuming the recent trend in analysts' sentiment continues, investors should expect to see Meta's consensus ratings firm and help drive the stock higher. 

Shares of Meta are down roughly 50% from their peak but hit bottom in October 2022. This bottom is marked by a spike in volume and a swing in the indicators, but it is not yet confirmed. Near-term action may be mixed with a test of resistance at the 150-day EMA and a possible retest of support near $93. Longer term, the stock may trade in a broader range with a top near $206 until results confirm the outlook. 

The Dogs Of Tech: It’s Time For A Bite Of These Stocks

Amazon, The Institutions Are Buying It

Amazon is getting support from analysts and institutions, although that is not yet evident in the chart. The 45 analysts covering the stock have it set at a Moderate Buy that has held relatively steady over the last year. The price target, down 25% YOY on a split-adjusted basis, is still more than 75% above the current action, and recent activity is firming, if ever so slightly. 

As for the institutions, the institutions took a big bite of the stock in Q3 and netted more than $205 billion in shares. That's about 24% of the company at recent valuations and has total ownership of up to 56%.

Some notable buyers are the California State Teachers Retirement Fund which bought $1.73 billion in late November, and CIBC Private Wealth Group, which bought another $1.44 billion in early November. Looking at the chart, this stock may not have hit bottom yet, but it seems very close.

The Dogs Of Tech: It’s Time For A Bite Of These Stocks

Salesforce.com Falls To More Attractive Levels 

Salesforce.com has fallen the hardest, with a decline of more than 56%, and it may have further to fall. The trend in analyst sentiment is still downward with no sign of firming, but the valuation is still astronomically high at 473X forward earnings. Salesforce.com is a force to be reckoned with, but even its market has to face reality; at some point, growth is factored into the price action, and then everything else is just foolish money waiting for a greater fool.

The takeaway is that institutional buyers have been nibbling on the stock and have netted more shares than they've sold. Net buying is worth about $1 billion or under 1% of the market cap over the past 12 months. And the chart? Shares of CRM hit another near-term bottom and look ready to swing higher. The question is whether it will get some positive analyst attention and start to bottom for real or if the downtrend will continue. 

The Dogs Of Tech: It’s Time For A Bite Of These Stocks

Should you invest $1,000 in Amazon.com right now?

Before you consider Amazon.com, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Amazon.com wasn't on the list.

While Amazon.com currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

13 Stocks Institutional Investors Won't Stop Buying

Which stocks are major institutional investors including hedge funds and endowments buying in today's market? Click the link below and we'll send you MarketBeat's list of thirteen stocks that institutional investors are buying up as quickly as they can.

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13 Stocks Institutional Investors Won't Stop Buying Cover

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Salesforce (CRM)
1.8846 of 5 stars
$214.25-4.1%N/A1,020.29Moderate Buy$212.81
Meta Platforms (META)
2.5143 of 5 stars
$273.47+3.3%N/A33.93Moderate Buy$245.13
Amazon.com (AMZN)
2.5391 of 5 stars
$123.17+2.1%N/A293.26Moderate Buy$143.17
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.

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