"Mahaney noted that companies are already trimming second-quarter spending, particularly in brand advertising, which typically gets cut first during periods of uncertainty."
"Several major tech stocks now trade at near trough multiples, calling them 'dislocated high-quality' opportunities, particularly Amazon.com Inc. and Meta Platforms Inc."
"Despite macro uncertainty, investors are likely to step into these names given their quality and valuation."
"He highlighted a recent ~20% rally in Amazon's stock, driven by improving sentiment around its AI positioning."
A softer second quarter is anticipated as companies begin to cut advertising budgets, particularly in brand advertising. Major tech stocks, including Amazon and Meta, are viewed as dislocated high-quality opportunities trading at near trough multiples. Despite macroeconomic uncertainty, investors are likely to invest in these stocks due to their quality and valuation. Amazon's recent 20% stock rally is attributed to improved sentiment regarding its AI positioning, with potential for a valuation re-rating similar to Alphabet's past performance.
Read at Benzinga
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