UBS sees the recent tech stock sell-off as a buy-the-dip opportunity for long-term investors.
UBS cites attractive valuations, solid fundamentals, and fading technical factors as reason to stick with large-cap tech.
But according to UBS, the recent decline in tech stocks is only temporary, and that should be apparent when mega-cap tech stocks report their second-quarter earnings results later this week.
A healthy sell-off in tech stocks has led to more attractive valuations for the fast-growing sector, especially when compared to previous bubbles.
"While the tech sector appears to be expensive after the rally this year, price-to-earnings multiples remain much lower than in the dot-com era, when many tech stocks had much lower-quality earnings," UBS said.
Persons:
—, Sundar Pichai
Organizations:
UBS, Service, Nasdaq, Apple, Microsoft