Our investment professionals share and challenge each other’s views, creating a diverse marketplace of ideas for the Wellington Blog.
As we begin 2022, the weakness in the consumer technology sector continues. Two-thirds of internet stocks currently trade 30% lower than their 52-week highs, with many down more than 50%.1 Amid this sell-off, our conviction in the long-term outlook for tech in general and consumer tech in particular remains strong. The key question is whether this market presents an opportunity to buy the dip or if investors should remain patient as the pullback could persist.
In our 2022 Outlook, we noted that valuations, tough year-over-year comparisons, and decelerating growth are among the issues that make it difficult to have much conviction on this question. Adding the Omicron variant to the mix further complicates the outlook for the consumer technology sector.
However, we think technology’s long-term secular tailwinds signal that the recent sell-off could be a significant opportunity to…
The growing excitement for the metaverse is powered by its incredible potential applications and the tremendous value they could create. But importantly, the technology enabling this seemingly magical innovation is still in development. What some overlook is that the biggest bottleneck today is not software or imagination — but rather the necessary upgrades to the metaverse’s foundational hardware infrastructure. This could create massive investment opportunities…
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