In an interview with CNBC, the tech bull said Amazon’s Q2 performance is the “renaissance of growth” that is about to happen at the company.
Wedbush Managing Director Dan Ives said the selloff in Amazon.com Inc.’s (AMZN) stock on Friday following the ecommerce giant’s second-quarter (Q2) earnings is a case of investors being “hypersensitive.”
In an interview with CNBC, the tech bull said Amazon’s Q2 performance is the “renaissance of growth” that is about to happen at the company, shrugging off the 8% decline seen on Friday.
Ives also predicted that Microsoft Corp.’s (MSFT) market capitalization could breach $5 trillion by 2026.
Amazon’s shares were up more than 1% in Monday’s pre-market trading session, while Microsoft’s shares rose 0.74%. Stocktwits data shows the retail sentiment around the AMZN and MSFT stocks was in the ‘extremely bullish’ territory.
“I view it as an overreaction,” Ives said, referring to the selloff in the Amazon stock on Friday. “To me, if you look at AWS, strong. You look at ultimately guidance, I mean guidance from a top-line perspective, I view it as pretty robust,” he added in the interview.
Ives referred to Microsoft’s fourth-quarter (Q4) results as “monster,” while adding that Meta Platforms Inc. (META) and Apple Inc. (AAPL) also performed well. However, while Microsoft’s stock did not perform too well after the Q4 results on Thursday, Ives said it is just the beginning.
“We think Microsoft is going to be a $5 trillion market capitalization [company] by 2026,” he explained, adding that investors could try to look for negatives. “This is just the next phase of growth that is going to the second, third, and fourth derivatives,” Ives said.
AMZN stock is down 2% year-to-date, while MSFT stock is up more than 24%.
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