Dan Ives: Tech Stocks Are Experiencing a '1996 Moment,' Not a Bubble Like in 1999
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 10 2025
0mins
Should l Buy META?
Source: Benzinga
Market Outlook: Wedbush Securities analyst Dan Ives believes the recent pullback in Big Tech stocks is a buying opportunity, likening the current market conditions to a "1996 Moment" rather than a "1999 Moment" indicative of a dot-com bust.
AI Revolution: Ives emphasizes that the AI revolution is just beginning, with significant growth potential in global AI infrastructure led by major tech companies like Nvidia, Microsoft, and Amazon, despite ongoing U.S.-China trade tensions.
Investment Strategy: He advises long-term investors to view temporary market sell-offs as prime entry points to buy tech winners, recommending diversified tech ETFs such as QQQ, XLK, and IVES.
Long-Term Perspective: Ives stresses that the AI era is still in its early stages, and investors should focus on the long-term opportunities rather than being swayed by short-term market fluctuations.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 612.880
Low
655.15
Averages
824.71
High
1117
Current: 612.880
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Positive Market Reaction: On May 3, 2026, Meta's stock price rose during trading, reflecting increased investor confidence in the company's financial health.
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- Strong Cash Flow: The company's cash flow continues to rise, demonstrating a notable improvement in operational efficiency and profitability, providing ample funding for future investments and expansions.
- Positive Market Reaction: On May 3, 2026, Meta's stock price rose during trading, reflecting increased investor confidence in the company's financial health.
- Optimistic Strategic Outlook: With the growth in profits and cash flow, Meta is poised to increase investments in new technologies and market expansion, thereby solidifying its leadership position in the tech industry.
See More
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- Election Setbacks: The Labour Party is experiencing significant losses in local elections, losing key seats and facing pressure from right-wing parties like Reform UK, indicating a decline in voter confidence that could lead to leadership challenges.
- Rising Borrowing Costs: U.K. borrowing costs have reached their highest level since 1998 ahead of the elections, intensifying market pressures on political challenges and potentially impacting future economic policies and investment confidence.
- Calls for Leadership Change: There are growing calls within the Labour Party for a leadership change, with former Shadow Chancellor John McDonnell stating that leadership transition must be on the agenda, reflecting internal dissatisfaction and concerns about the party's future direction.
- International Tensions: The U.S. and Iran have exchanged fire in the Strait of Hormuz, with both sides blaming each other, which could complicate the upcoming meeting between Trump and Xi, further exacerbating global market uncertainties.
See More
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- Strong Price Recovery: Nvidia's stock has surged approximately 19% over the past 30 days, with a rally exceeding 32% from a late March low, currently trading near its all-time high of $216.61, reflecting strong market confidence in AI chip demand.
- Impressive Financial Results: In its fiscal Q4 2026, Nvidia reported a 73% year-over-year revenue increase to $68.1 billion, with nearly all growth driven by its data center segment, which reached $62.3 billion, up 75% year-over-year, accounting for over 91% of total sales, showcasing the company's robust performance in AI infrastructure.
- Optimistic Future Guidance: The company forecasts fiscal Q1 2026 revenue of $78 billion, representing about 77% year-over-year growth, explicitly excluding any revenue from Chinese data center compute, indicating strong confidence in future growth despite trade policy uncertainties.
- Increasing Market Competition: While Nvidia currently dominates the market, major clients like Amazon, Alphabet, and Meta are developing their own chips, posing a potential long-term threat to Nvidia's market share, which investors should closely monitor.
See More
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- Significant Earnings Growth: Nvidia's latest earnings report reveals a 73% year-over-year revenue increase for fiscal Q4 2026, reaching $68.1 billion, primarily driven by a robust data center segment that generated $62.3 billion, up 75% year-over-year, accounting for over 91% of total sales, underscoring the company's strong competitive position in the AI market.
- Optimistic Future Guidance: Management forecasts fiscal Q1 2026 revenue of $78 billion, reflecting approximately 77% growth, explicitly excluding any revenue from Chinese data centers, indicating confidence in sustained demand for AI infrastructure, which could further boost stock prices.
- Strong Stock Performance: Nvidia's stock has surged about 19% over the past 30 days, nearing its all-time high of $216.61, with a current price-to-earnings ratio of around 43, which is below its 10-year average, suggesting market optimism regarding future growth prospects.
- Market Risks to Monitor: Despite the strong growth momentum, Nvidia faces competition from customers developing their own chips and uncertainties surrounding U.S.-China trade policies, necessitating careful evaluation of the sustainability of AI infrastructure spending to navigate potential market volatility.
See More
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- Dutch Pension Strategy: Europe's largest pension investor, APG, plans to increase its allocation to private markets to over 30%, with private debt rising from 1.5% to between 2% and 4%, seizing current credit market volatility as an opportunity.
- UK Pension Commitment: The UK state-backed pension scheme Nest has committed £450 million to U.S. private credit and aims to raise its overall private markets allocation to around 30% by 2030, significantly above industry norms, reflecting strong confidence in private credit.
- Liquidity and Risk Management: Despite market pressures, pension funds continue to invest in private credit due to their long-term liability structures that allow them to hold less liquid assets, with current redemption issues being more about liquidity than credit quality.
See More
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- Layoff Charges Expected: Cloudflare anticipates incurring charges between $140 million and $150 million due to layoffs, which will be reflected in Q2 earnings, indicating financial strain during its transformation process.
- Performance Beats Expectations: The company reported adjusted earnings of $0.25 per share for Q1, exceeding the expected $0.23, with revenue rising to $639.8 million from $479.1 million a year prior, showcasing strong market performance amid its AI transition.
- Upgraded Future Outlook: Cloudflare raised its 2026 adjusted earnings guidance to between $1.19 and $1.20 per share, significantly above the previous forecast of $1.11 to $1.12, reflecting management's confidence in future performance despite uncertainties from layoffs.
- Market Sentiment Analysis: While Cloudflare's stock has soared 111% over the past year, investor sentiment appears cautious following the layoff announcement, with some analysts suggesting that the cuts may introduce execution risks that could undermine investor confidence.
See More
