Evercore’s Emanuel Says Earnings Will Rescue Tech From Selloff

Julian Emanuel, a senior managing director at Evercore ISI, stated that megacap technology stocks are poised for a rebound and will regain investor favor after a recent selloff. This downturn has caused some of the largest technology companies to experience losses exceeding 10% in recent weeks. Emanuel's analysis, shared in a note to clients on May 15, 2024, suggests that upcoming earnings reports will be the catalyst for this recovery. He specifically highlighted that the market is currently underestimating the strength and resilience of these tech giants, implying that their financial performance will surprise investors and reverse the current negative trend. The expectation is that positive earnings surprises will outweigh concerns about macroeconomic headwinds or regulatory pressures that have contributed to the recent stock price declines.