The tech sector (XLK) is under pressure Friday, with the Nasdaq Composite (^IXIC) tumbling 2.5%. Goldman Sachs Senior Equity Research Analyst Eric Sheridan joins Market Domination to discuss his outlook on the digital consumer.
Sheridan notes that when it comes to the digital consumer, there isn’t a “black and white” answer regarding the health of this segment. While acknowledging that consumer spending is slowing, Sheridan doesn’t believe the economy is “hurtling towards any kind of recession in terms of the digital consumer and the digital economy.”
Regarding AI return on investment, Sheridan observes that cloud computing companies are seeing the most direct returns on AI spend. However, he notes that it will take longer to see returns in the consumer landscape. “Most consumers have the same internet habits today that they had 18-24 months ago around the time that ChatGPT exploded,” he states.
Sheridan explains that it takes time for consumers to adjust their computing habits. So while enterprises are seeing immediate returns, it is normal for consumer adoption to lag behind.
Watch the video above to hear which tech stock Sheridan recommends: Alphabet (GOOG, GOOGL) or Meta (META).
#stockmarket #youtube #news
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at finance.yahoo.com
– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
source
