Fall In Tech Shares Could Offer Interesting Buying Opportunity

The last couple of days have seen a fall in the value of technology shares across US stock markets amid what many believe to be a bout of profit-taking. It will be interesting to see if this is the case because this fall in the technology sector has been accompanied by buying of defensive stocks which were until recently out-of-favour. This could indicate a switch from high-tech stocks to more traditional companies such as automobile manufacturers, banks, etc. So, is the recent fall in tech shares a buying opportunity or cause for concern?

No need to panic yet

If you take a look at the fundamentals of the technology sector as a whole there is no doubt that current trading has improved of late. The US economy is showing signs of life again, Donald Trump appears to be refocusing on his US economic policies and there has been significant demand for technology shares of late. Indeed, it is the technology sector which has pushed the likes of the NASDAQ and the Dow Jones industrial average to near-record levels and therefore a bout of profit-taking might actually be helpful in the short term.

Read full article here

 

I am doing a little buying and also some profit taking.

I recently bought 10 shares of AMZN after having been out of it for quite a while - I last owned it @ $640 or so - I had taken profits back then after it had roughly doubled on me.

 

Good call JR, I think Amazon is a buy on the dips. The business model can be replicated across almost every business sector. Also, Amazon has a loyal customer base which trusts the company, no questions asked.

 

AMZN
6/12/2017 Buy 10.0000 948.4100 0.00 9,484.10 10.0000
10/27/2017 Sell 10.0000 1,100.6499 0.00 11,006.50 0.0000

 

I am starting to think that Amazon is a no-brainer to buy on the dips. US online retail market expected to hit $1 trillion by 2027 and Amazon forecast to have more than 50% of that.

 

Yeah, I will very likely buy AMZN again in the future on pullbacks.

 

Amazon is a good stock to buy and tuck away on the dips - the only real problem I see if from the regulators. If the company gets too powerful they will try to restrict growth and influence but the genie is out of the bottle I think.