Bullish Take On Tech Stocks: The Dot Com Guy

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Tech Stocks Back In Focus Following “Expensive” Market In June

The man who made himself popular during the dot-com bubble is fleeing from his bearish view on tech stocks and going by way of the bulls. “I don’t think they’re screaming buys here, but I would initiate positions or slightly add to — nothing too aggressive,” Paul Meeks said recently on CNBC.

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Meeks is the chief investment officer for Sloy, Dahl, & Holst and says that he’s back to being open to the risk that tech has inherently offered. Though a bit hesitant he is still ready ot make the change from his previous bearish stance on the topic. Meeks worked at Merrill Lunch during the tech boom and resulting collapse at the time. But he’s noted that the current outperformance that tech stocks are having could be cause for worry.

In his interview, Meeks felt that prices for certain tech stocks were previously overbought and too expensive. They didn’t “reflect valuations accurately.” In particular, technology stocks like Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Google’s parent company Alphabet (GOOGL) were in this “basket” of expensive stocks.

But over the course of the last few months, he feels ready to dive back into tech. He’s currently targeting several cloud stocks like Oracle, Salesforce, Microsoft, and a few “FANG” names as well.

“In the technology sector, I’d like to focus on the leadership names — the ones that are doing well. They are mostly my grouping of cloud-oriented names. I actually think that most of them have come down quite a ways since they announced their June quarter results,” Meeks said. “I do think that if anything ever slightly positive happens to these companies, they’re going to have a big, big bounce off the bottom.”

For investors capable of weathering the volatility that many technology stocks may offer, some exposure to stocks like Fitbit and Akamai are what Meeks has also put into his portfolio recently.

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