Piper Sandler chief investment strategist Michael Kantrowitz says expectations for tech earnings are at an unprecedented high bar. Although the AI businesses of Mag 7 companies performed strongly, core businesses such as AWS, Google Cloud, Amazon's e-commerce and Google's search weakened, which spooked investors. The consensus five-year earnings growth forecast for the tech sector is 43%, versus about 25% in 2000 and about 20% a year ago. Market multiples have fallen from 23 to just below 19, partly reflecting AI capex and concern that growth may have peaked, so many companies' earnings may not be sustainable. Among higher-beta, cyclical names, the strategist says companies that are currently profitable and generate strong free cash flow are preferred.
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earningsvaluationtech stocksAMZNcloud computing
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 11/03/2026 | 250.74 |
| Change that session | +2.08% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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