Tech sell-off: Threat Or Opportunity?

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Tech sell-off: Threat Or Opportunity?

 

The Technology sell-off of the last few days has been quite brutal even if a correction had been in the air for quite a long time with many investors quoting spectacular gains in 2017 and high valuations (we disagree on this) as the main reasons for taking profits or not investing in Technology.

In our view, such a move points to a healthy market and will ease market exuberance concerns as some investors lock in profits and switch to investments towards other strategies they deem more attractive on a risk/return basis and as some others, who were waiting for a correction, will take the opportunity to enter into the space or increase their exposure.

What’s of utter importance when investing, especially in high-growth sectors like the ones we cover at AtonRâ Partners, is to always have a perfect view of catalysts and triggers in order to have a competitive edge.

 

 

30/11/2017

AtonRâ Bionics Update

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The FDA Move A Breakthrough Moment For Bionics

 

Contrary to what one might think, governments across the world are gradually becoming supportive  of the Technology and Digital industry and political decisions in the last 12 months have had a tremendous and positive impact on many tech segments.

 

28/09/2017

AtonRâ Innovation And Artificial Intelligence Update

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Electric Vehicles At An Inflexion Point

 

We have long been playing the electric car & autonomous driving theme in our Innovation and Artificial Intelligence portfolios through positions in specific semiconductor companies and car manufacturer Tesla, considering that the Tesla Model 3 release would lead traditional carmakers to accelerate their pace of innovation and the shipment of electric and smart cars for the mass market.

 

22/09/2017

AtonRâ Fintech Update

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Things Are Moving Fast As Square Applies For A Banking License

 

Payment processor Square (SQ US) announced last week it would apply for a banking license in the US. Following similar moves from private startups SoFi and Varo Money, this is the first time a listed fintech tries to get the banking status since the US administration’s decision late last year to open up a specific bank charter to fintech companies.

 

11/09/2017

M&A Heating Up In The Mobile Payment Space

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We have long been saying that the payment processing market (or, more basically, the handling of electronic payment transactions) is highly fragmented and that companies with sufficient financial firepower will try to expand their geographic footprint and show off the scalability of their business model through EPS-enhancing acquisitions.

06/07/2017

Trumpxit - And Now?

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Following Donald Trump's election we assess the political and financial consequences and more specifially the implications for our different themes and certificates

14/11/2016

Biotech And Pharma Madness

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After huge pressure on the Pharma and Biotechnology names in October (including our Biotech actively-managed-certificate), the first week of November did not give any sign of relief

07/11/2016

AMD: Remaining Upbeat After The Equity Offering

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The headline dilution numbers, as well as the surprisingly high discount on the offering price ($6 vs. a $7.30 price prior to the announcement), arguably drove the stock price pressure. That said, we view this balance sheet repair positively, both on financial and strategic grounds

09/09/2016

Nvidia's Ludicrous Mode

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Impressive revenue acceleration confirms that Nvidia has entered into a new, massive growth cycle. We believe the recent price run does not fully capture the company’s earnings power and that multiple expansion and earnings upside could drive Nvidia’s valuation 25-30% higher

12/08/2016

GOPRO: Beat And Raise Cycle In The Making

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Consensus’ expectation of a 10% growth in GoPro’s action camera segment in the second half of the year (driven by the HERO5 launch) appears extremely conservative in light of similar refresh cycles undertaken by other tech companies. In our view, GoPro is likely to reach the high-end of its guidance (or even exceed it), pointing to at least 9% revenue upside

09/08/2016

Zynga: Margins On The Right Track

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While the market was again disappointed by Zynga’s declining user numbers, we believe that this issue could be fixed soon as Zynga released in early Q3 “CSR2, a racing game which ranks among the top grossing apps on iOS and Google Play in the U.S., and will launch “Farmville: Tropic Escape” in late Q3 and “Dawn of Titans” in Q4. With profitability on the right track, we stick to our view that the company's earnings are at an inflection point

08/08/2016

EA: Gunning For A Strong Holiday Season

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EA’s focus on GAAP guidelines for Q2 and FY17 is likely to create some confusion among investors who have historically handled non-GAAP numbers. That being said, investors should mainly pay attention to management’s high level of confidence about the company’s outlook during the conference call, suggesting that the risk is skewed to the upside. A detailed analysis of the company's product lineup points to 5% revenue upside for FY17

04/08/2016

AMD: Q3 & Q4 Expectations Offer Significant Upside

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For the second quarter in a row, AMD delivered a solid revenue and earnings beat. Investors are likely to shift their focus from AMD's weak balance sheet to the company's numerous growth opportunities and long-term earnings power

22/07/2016