Congress' stimulus bill is now the 'most important data point' for Big Tech, DA Davidson's Tom Forte says after blockbuster earnings
Tom Fortesaid what happens with the next stimulus billis the "most important data point for technology stocks."
- The senior research analyst at DA Davidson told Bloomberg the $600-a-week
stimulusis benefiting the results of a number of companies.
- Forte remains a tech bull and raised his price targets for both
- Read More on Business Insider.
Tom Forte, senior research analyst at DA Davidson, told Bloomberg on Friday that the "sequel of the CARES Act" is the "most important data point for technology stocks."The analyst said that a number of companies have suggested the current stimulus, which provides an extra $600 a week in
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Forte added that a recent University of Chicago study showed 68% of recipients of unemployment made more money on $600 a week than they did while they were working. He's closely monitoring whether Congress will reduce the amount of stimulus next week, and said, "If 600 a week becomes 200 a week, that is a huge difference."However, Forte remains bullish on tech stocks. He reiterated his buy ratings for both Apple and Amazon, and raised his price target for both companies following Thursday's
Forte raised his price target for Amazon to $3,800 from $2,625. He called the surge in Amazon's retail sales "impressive" but noted that the company's cloud computing revenue continues to decelerate. Adding in that Amazon is expected to spend $2 billion in September to combat COVID-19, Forte said that the pandemic still represents "challenges to Amazon and not just excellent opportunities."
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