Tech stocks pared declines on Monday, despite continued headlines rattling the price of technology shares.
NASDAQ-100 Technology Sector index rose 0.4% on Monday, gaining 16% in the past last year.
On Saturday, President Donald Trump pressured Apple Inc (AAPL) to start manufacturing its products in the United States. Last week, Twitter Inc (TWTR) and Facebook (FB) tackled questions from Washington lawmakers about how they handle user data and privacy.
Apple stock closed down about 1.3% on Monday, as Facebook shares rose 0.7% and Twitter gained 0.2%.
Tom Forte, of D.A. Davidson & Co said there are good value technology stocks that pulled back in the recent tech slump and are bound to regain significant value this year.
"You read the headlines and you'd think that the big tech stocks had lost much more value, but there are other opportunities in the tech sector," Forte said.
Overstock (OSTK) shares have retreated 71% from their 52-week high in January, volatility linked to the stock trading in lockstep with bitcoin. The completion of a funding deal with GSR Capital and the sale of its legacy home e-commerce business are catalysts for the stock to trade higher, Forte forecasted, setting a $112 price target, including the $45 per share valuation for the sale of the e-commerce business and $67 for its portfolio of investments in companies leveraging Blockchain technology.
Turtle Beach (HEAR) shares have declined 30.9 % off their 52-week highs in August this year, with Forte saying the gaming headset and audio accessory brand has significant potential to drive sales growth including expansion into the PC headset market, setting a buy rating and $38 price target.
eBay (EBAY) is currently trading a free cash flow yield of 12.5%, according to Forte's projections based on 2020 free cash flow per share estimates of $4.26. The company has "multiple levers," to pull to drive sustainable double-digit top-line growth which should make it appeal to large cap growth investors. Forte issued a $50 price target and a buy rating.
Still, Forte rated Apple a buy with a $265 price target, noting there were concerns about potentially negative impacts operationally due to trade tensions with China.
"It is clearly the most significant risk, but an argument can be made it won't have as negative an impact as people fear," he said.
