Forget Meta-Led Slump: 3 Reasons to Buy Tech ETFs on the Dip

Zacks04-25

Meta Platforms Inc. META, the parent company of Facebook, saw a stock slump of 15.2% in after-hours trading on Apr 24, 2024, as disappointing revenue guidance for the current quarter and plans for ...

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META, the parent company of Facebook, saw a stock slump of 15.2% in after-hours trading on Apr 24, 2024, as disappointing revenue guidance for the current quarter and plans for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/forget-meta-led-slump-3-120000624.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Forget Meta-Led Slump: 3 Reasons to Buy Tech ETFs on the Dip</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nForget Meta-Led Slump: 3 Reasons to Buy Tech ETFs on the Dip\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-25 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/forget-meta-led-slump-3-120000624.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Meta Platforms Inc. META, the parent company of Facebook, saw a stock slump of 15.2% in after-hours trading on Apr 24, 2024, as disappointing revenue guidance for the current quarter and plans for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/forget-meta-led-slump-3-120000624.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FXL","symbol_name":"First Trust Technology AlphaDEX Fund","start_time":0,"source_url":"https://finance.yahoo.com/news/forget-meta-led-slump-3-120000624.html","article_id":"2430388281","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/GOPg01QWeZCdWbg2Qj.YjQ--~B/aD0zNDk7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/08387a46155af292349fa5c907d3c014"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2430388281","pubTimestamp":1714046400,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Meta Platforms Inc. META, the parent company of Facebook, saw a stock slump of 15.2% in after-hours trading on Apr 24, 2024, as disappointing revenue guidance for the current quarter and plans for increased capital expenditures outshined the earnings beat. Meta, being a member of “Magnificent Seven,” has the ability to pull strings in the broader technology market. No wonder, the tech-heavy Invesco QQQ Trust ETF QQQ dropped 1.1% after hours.Despite Meta's intentions to utilize AI in its operations, the current outlook doesn't suggest many benefits from AI adoption. Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors, said that the lack of clarity on AI's benefits to users and the absence of visible cost savings are key concerns for investors, per a Bloomberg article.Should You Ignore Meta-Led Slump & Bet on Broader Tech ETFs on the Dip?“New normal” trends like work-and-learn-from-home and online shopping, increasing digital payments and growing video streaming are sure to s","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"FXL":"First Trust Technology AlphaDEX Fund","BK4507":"流媒体概念","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","FDN":"First Trust Dow Jones Internet I","LU0171293334.USD":"贝莱德英国基金A2","BK4535":"淡马锡持仓","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","BK4538":"云计算","TDIV":"第一信托纳斯达克科技股利指数基金","BK4077":"互动媒体与服务","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","BK4550":"红杉资本持仓","FCLD":"Fidelity Cloud Computing ETF","LU0097036916.USD":"贝莱德美国增长A2 USD","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1691799644.USD":"Amundi Funds Polen Capital Global Growth A2 (C) USD","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","BK4097":"系统软件","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","SOXQ":"Invesco PHLX Semiconductor ETF","CAGR":"California Grapes International, Inc.","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","QQQ":"纳指100ETF","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","XLK":"高科技指数ETF-SPDR","BK4514":"搜索引擎","GOOG":"谷歌","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","MSFT":"微软","GOOGL":"谷歌A","IE0034235295.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"A\" (USD) ACC","BK4528":"SaaS概念","META":"Meta Platforms","BK4516":"特朗普概念","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","BK4554":"元宇宙及AR概念","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","BK4553":"喜马拉雅资本持仓"},"translate_title":"忘记元主导的暴跌：在下跌时购买科技ETF的3个理由","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XLK":1,"TDIV":1,"SOXQ":1,"QQQ":1,"FXL":1,"FCLD":1,"CAGR":1,"FDN":0.9,"GOOGL":0.9,"GOOG":0.9,"META":0.9,"MSFT":0.79},"content_text":"Meta Platforms Inc. META, the parent company of Facebook, saw a stock slump of 15.2% in after-hours trading on Apr 24, 2024, as disappointing revenue guidance for the current quarter and plans for increased capital expenditures outshined the earnings beat. Meta, being a member of “Magnificent Seven,” has the ability to pull strings in the broader technology market. No wonder, the tech-heavy Invesco QQQ Trust ETF QQQ dropped 1.1% after hours.\nDespite Meta's intentions to utilize AI in its operations, the current outlook doesn't suggest many benefits from AI adoption. Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors, said that the lack of clarity on AI's benefits to users and the absence of visible cost savings are key concerns for investors, per a Bloomberg article.\nBroader Tech Market Impact\nThe repercussions extended beyond Meta are hurting other key tech players. Alphabet Inc. and Microsoft Corp. experienced declines of around 3.3% and more than 2.5%, respectively. Social media companies such as Snap Inc. (down 5.2% after hours), Pinterest Inc. (down 4.4% after hours) and Reddit Inc. (down 1% after hours) saw notable drops, indicating uneasiness in the broader market.\nShould You Ignore Meta-Led Slump & Bet on Broader Tech ETFs on the Dip?\nLet’s discuss a few factors that indicate why investors should not turn their faces from the tech investing arena and why subdued revenue growth could be a new normal for tech companies. Technological advancements are part and parcel of our lives and so should tech ETFs be in our portfolios. In the last 20 years, Technology Select Sector SPDR ETF XLK witnessed a 11.05% compound annual U.S. inflation-adjusted return, while the figure has been 17.35% over the past 10 years.\nEasy Comps Likely Receding for Big Tech: Time to Get Accustomed?\nUBS Global Research has revised its outlook for the \"Big Six\" tech companies — Apple, Amazon, Google-parent Alphabet, Meta, Microsoft and NVIDIA — from \"Overweight\" to \"Neutral,\" according to a recent statement by Jonathan Golub, the chief U.S. equity strategist at UBS Investment Bank, according to a source.\nGolub said that the downgrade is not based on rich valuations or concerns about the sustainability and momentum of the AI technology. Instead, he pointed out that tough comps compared to the pandemic period will pose threats to future growth rates.\nA reduction in costs and easy comparisons boosted big tech companies’ profits, which peaked in the fourth quarter of 2023. But this jump will likely be followed by a decline in earnings, going forward. Since the tech sector’s solid fundamentals are still in place, investors should not worry much about tougher comps.\nStrong Long-Term Future for Tech\n“New normal” trends like work-and-learn-from-home and online shopping, increasing digital payments and growing video streaming are sure to stay here even if the pandemic has ebbed. The growing adoption of cloud computing, and the ongoing infusion of AI, machine learning and IoT are the other winning areas.\nWe can definitely witness some occasional hits and misses in AI integration and monetarization, but the long-term future is bullish. The global artificial intelligence market size is projected to experience a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030, per GrandViewResearch, as quoted on Forbes.\nSome budding areas like AI, and still-nascent areas like metaverse, may be causing companies cash outflows, but these initiatives could turn out to be the future of the tech sector, if executed properly.\nWill Likely Fed Rate Cuts in 2025 Favor Tech Stocks?\nMeta’s increased capex plan may be bothering investors today as interest rates are currently high in the United States. But there are chances of the Fed slashing rates from late 2024, an easing activity, which should gather more momentum in 2025. If the Fed eases policies, tech stocks will likely have a new lease of life. Lest we forget, the U.S. tech sector had a blockbuster 2020 due to easy money policy despite the lockdown.\nETFs in Focus\nSo, don’t shy away from the tech sector altogether. Below, we highlight a few tech ETFs that have a relatively low P/E (notably, the Nasdaq’s P/E ttm is 27.15X) and appear as compelling bets for the long-term.\nInvesco PHLX Semiconductor ETF SOXQ – P/E: 15.08X; Zacks Rank #1 (Strong Buy)\nFirst Trust Technology AlphaDEX Fund FXL – P/E: 19.23X; Zacks Rank #1\nFirst Trust NASDAQ Technology Dividend Index Fund TDIV – P/E: 19.33X\nFidelity Cloud Computing ETF FCLD – P/E: 20.92X\nTechnology Select Sector SPDR Fund XLK – P/E: 23.77X; Zacks Rank #1\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nInvesco QQQ (QQQ): ETF Research Reports\nTechnology Select Sector SPDR ETF (XLK): ETF Research Reports\nFirst Trust Technology AlphaDEX ETF (FXL): ETF Research Reports\nFirst Trust NASDAQ Technology Dividend ETF (TDIV): ETF Research Reports\nInvesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports\nMeta Platforms, Inc. (META) : Free Stock Analysis Report\nFidelity Cloud Computing ETF (FCLD): ETF Research Reports\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2430388281"}