As you might remember from Wednesday’s Fast Money of all the sectors in the S&P, tech was the only one to close out the first quarter of ’09 in the green – it was up 4%.
Will stocks in this sector continue to outperform? For insights we turned to widely followed tech analyst Gene Munster of Piper Jaffray.
Here’s a synopsis of what he told us:
- Q1 revenues will likely come in about 5% lower than last year, which is slightly below consensus.
- The firm appears poised to win more dollars from paid clicks.
Munster’s Conclusion: I’d be long Google ahead of earnings. At the end of the day the advertising market isn’t as bad as most people think.
- Both Mac and iPod sales should be strong.
- New iPhones in June and a more affordable AT&T plan could provide catalyst for the stock.
Munster’s Conclusion: We think the stock is going to pull back after Apple's earnings report. I’d look to own it going into the summer.
In case you’re wondering, Munster also told the desk Microsoft still faces a hard road ahead and he expects them to face pricing pressure from netbooks.
In addition, Munster said chip stocks are starting to improve but it’s hard to say whether the improvement will be sustainable.