Analysts say that Metaverse, encryption and quantum will benefit large technology companies

Cyrus Mewawalla, head of subject research at GlobalData, a data analysis and consulting company, said that thanks to a number of emerging technologies, large US technology stocks will get rid of inflation this year and continue to rise.

Mewawalla told CNBC’s “European Signpost” program on Monday that if technology companies do business in these areas, they will benefit from Metaverse, Web 3.0, cryptocurrency and quantum computing.

“If you are in that field, you will benefit regardless of the macroeconomic issues,” he said.

On Monday, the high-tech Nasdaq 100 index Down nearly 1%The S&P 500 Index and the Nasdaq Composite Index fell for four consecutive days. With interest rates soaring, the stock market is off to a bad start this year.

Large technology companies are investing billions of dollars in new technologies that have the potential to fundamentally change the way we live and work.

At the end of last year, Facebook changed its name to Yuan To reflect its focus on the so-called meta-universe: a virtual world where humans can interact with each other through digital avatars, which can be controlled by virtual reality headsets such as Oculus.Elsewhere, the company likes Google and Microsoft Also developed a VR headset, and Apple There are rumors that one is being studied.

Several technology giants are studying commercial applications of quantum computers, and Meta plans to launch a cryptocurrency called Diem. So far, most of them have remained silent about Web 3.0, which is hailed as the next version of the Internet.

Apple warning

Last week, Apple saw its Valuation rose to more than 3 trillion U.S. dollars, Making it the most valuable U.S. stock ever made, and to a certain extent the largest technology company in the world. But according to Mewawalla, the iPhone maker’s stock price may not rise this year like some other large technology companies.

“In terms of maintaining its valuation, Apple may be the least likely to grow from here,” he said. “It has a very, very strong ecosystem with very strong execution. So I think the downside risk is small. But I see more upside potential in other large technology stocks.”

Apple CEO Tim Cook delivered a keynote speech at the 2020 Apple Worldwide Developers Conference (WWDC) held at the Steve Jobs Theater in Cupertino, California.

Brooks Kraft/Apple/Reuters Handout

When asked if there will be more surprises in Apple’s upside this year, Mewawala said that CEO Tim Cook’s performance in the past 10 years was “absolutely amazing”, with its market value increasing from approximately $350 billion. To 3 trillion US dollars.

“But at that time, there was almost no innovation other than the Apple Watch. Its operating system was actually an extension of iOS,” he said. “Apple TV is a bit of a failure because it has no real new blockbuster products. Now some people are talking about new blockbuster products, such as electric cars. It may be a self-driving car. Smart glasses, related to this, “maybe it is Meta Universe. But before we see more evidence, of course Apple is notoriously confidential, which is hard to say. “

Mewawalla said that at the same time, Amazon and Google’s parent company Alphabet are the most affected in terms of regulation, adding that they face a wide range of issues, including data, privacy, antitrust and copyright. In other words, he believes that there will not be any “major” incidents in the near future.

In terms of acquisitions, Mewawalla stated that it will be “highly restricted” in the future, adding that the United Kingdom and other countries are introducing new merger and acquisition laws to prevent the company from becoming too large and powerful.

“I think the acquisition strategy will have to change, and stricter regulatory review must be taken into account,” he said.