The tech-heavy Nasdaq Composite has jumped more than 19% year-to-date, more than doubling the S&P 500’s 7.2% rise, boosted by stronger-than-expected earnings and cost-cutting measures from major companies. Therefore, investors could consider buying quality stock Dropbox, Inc. (DBX) to capitalize on the industry tailwinds.
However, the current economic scenario with high-interest rates, stubborn inflation, and the collapse of the banking sector in the US presents a set of obstacles for the tech industry. Thus, I think tech stocks Snowflake Inc. (SNOW) and Shift4 Payments, Inc. (FOUR) are best avoided.
