Apple, Microsoft atop playbook as Wedbush says correction causes ‘haves and have nots’

Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) are atop the tech playbook at Wedbush Securities, as the investment firm notes the recent market correction is not the second version of the dot-com bubble, but it will split the tech sector into “clear haves and have nots.”

In a note to clients, analyst Dan Ives said there will be companies that become reminiscent of, Webvan, WorldCom and Global Crossing as companies either “go away” or merge, but the strongest companies are likely to emerge from the current environment even stronger.

After speaking to a number of IT product managers, customers, partners, Chief Information Officers and Chief Information Security Officers, it’s likely that areas such as cyber security, cloud, artificial intelligence and big data will continue to see strong spending, “despite the impending softer macro and jittery markets.”

It’s possible that 2022 and 2023 revenue estimates come down for enterprise companies, including “stalwarts” such as Microsoft (MSFT), but in a worst-case scenario, they would be down no less than 10%.

Aside from Apple (AAPL) and Microsoft (MSFT), the playbook for the top tech stocks include Palo Alto Networks (NASDAQ:PANW), Check Point (CHKP), Zscaler (ZS), Fortinet (FTNT), Tenable (TENB), CyberArk (CYBR) in the cyber security space, while Tesla (NASDAQ:TSLA) joins Apple (AAPL) and Microsoft (MSFT) among the top large cap tech stocks.

Earlier this month, Microsoft (MSFT) said it was teaming up with Volkswagen Group to bring its HoloLens augmented reality glasses to vehicles, including cars and trucks.

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