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Wall Street takes a beat as sinking British pound rattles markets

Is the worst finally over the FAANGs of tech?

The Nasdaq, which includes Facebook owner Meta Platforms (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google parent Alphabet (GOOGL) among its top stocks, was up nearly 1% Monday and poised to break a four-day losing streak — even as the broader market fell again.

Tech stocks have taken a beating this year, with the Nasdaq down nearly 30% in 2022 as analysts rapidly cut earnings estimates due to concerns about the slowing global economy hurting sales.

According to data from FactSet, there have been notable downward revisions for the forecasts of Meta, Alphabet and Amazon since the end of June. Meanwhile Intel (INTC) and other chip stocks have also dragged down the Nasdaq, as Wall Street has slashed earnings forecasts for semiconductors.

But the worst of the earnings slowdown just might, finally, be priced in.

FactSet also noted that analysts are predicting the biggest jump in stock prices for the communications services sector (which includes Meta and Alphabet) as well as the tech sector, a group that has Apple and Microsoft (MSFT) among its top stocks.

Analysts expect the communication services sector to soar nearly 38% over the next 12 months, according to FactSet, while the information technology sector is forecast to rise more than 31%.

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