Analyst: Metaverse, crypto to boost big tech stocks, but Apple is most unlikely to grow

Cyrus Mewawalla, head of thematic research at data analytics and consultancy firm GlobalData, states that U.S. large technology stocks will outperform inflation and keep rising this year.
Mewawalla told CNBC’s “Street Signs Europe” that tech firms operating in those areas stand to benefit from the metaverse, Web 3.0, cryptocurrencies, and quantum computing. Regardless of macroeconomic issues, business in that sector will prosper, he added. There is a large investment in new technologies by large tech companies that have the potential to fundamentally change how we live and work.

Meta with a focus on metaverse


The name Facebook changed to Meta at the end of the year to reflect its focus on the metaverse. A virtual world where humans could interact with one another via digital avatars controlled by virtual reality headsets like Oculus. A VR headset has been developed by Google and Microsoft, and Apple has also reportedly developed one.
As several tech giants develop commercial applications for quantum computers, Meta is launching the Diem cryptocurrency. As of yet, most of them are remaining silent about Web 3.0, the next version of the internet.

Warning regarding Apple and some other


Apple’s stock valuation topped $3 trillion last week. Making it the most valuable company in the world and the biggest in the United States. Mewawalla, however, said the iPhone maker’s share price might not rise as much as some of the other Big Tech companies this year. According to him, Apple is likely to maintain its valuation the least from here. It’s got a very strong ecosystem, as well as strong execution.” This means I don’t see many downside risks. Nevertheless, there are also many other big tech stocks with good upside potential.”
Apple CEO Tim Cook has been “absolutely phenomenal” in the past decade, taking the company’s market cap from around $350 billion to $3 trillion, Mewawalla said when asked if the company would be able to produce surprise earnings this year.

Practices of low innovation


“However, there has been little innovation in that time, except maybe for the Apple Watch, whose system operating system is really an extension of iOS,” he noted. In terms of new products, the Apple TV was a flop as there was nothing new. A new electric car is one of the newest blockbuster products. What about smart glasses? Maybe they’re connected to the metaverse? However, until we see more proof of that and since Apple is notoriously secretive, it’s hard to say.
As for regulation, Mewawalla said Amazon and Google-parent Alphabet are most exposed, including issues related to data, privacy, antitrust, and copyright. Nevertheless, he doesn’t expect anything major to occur in the near future.
He said acquisitions will be “highly restricted” in the future, adding that the U.K. and other countries are adopting new M&A laws to prevent companies from growing too large and powerful.

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