00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Ed Yardini said technology stocks have returned to attractive levels for long-term investors
00:06after a pullback from last year's highs, according to Bloomberg.
00:10Technology stocks have fallen 13% from their October peak as uncertainty around artificial
00:14intelligence and the war with Iran weighed on the sector. Earnings estimates accelerated during
00:19that period and pushed the price-to-earnings ratio to 20.6, close to the S&P 500's 19.6
00:25multiple.
00:25Yardini said this creates an attractive entry point for long-term investors.
00:29The sector rose 0.5% Monday and extended a four-day winning streak, but remains down
00:347.1% this year. Information technology and communication services now make up a majority
00:39of the S&P 500's market cap, exceeding dot-com-era levels, though Yardini said earnings support
00:44is stronger. Wells Fargo Investment Institute upgraded the sector to favorable, citing its
00:49underperformance against the S&P 500 and a durable outlook supported by the AI build-out.
00:53For all things money, visit Benzinga.com.
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