Stay away from the "old-era, 1990s client server-driven type tech stocks," said Paul Meeks, Saturna Capital growth equity portfolio manager, on Friday.
"The most troubled areas have been some of the old era, 1990s client server-driven era areas like semiconductors, storage and hardware," he said in an interview with CNBC's "Squawk Alley."
Instead, Meeks said, focus on big data analytics as the space to grow moving forward. He singled out Tableau Software and Splunk as attractive plays.
"You have to identify the technology and make sure that they have something special in particular. For Tableau they have something special," he said. Meeks also suggested looking for companies with a large total available market.
On possible consolidation in the space, Meeks said that Tableau and Splunk are currently too expensive to merge. "But these other vintage 1990s companies, if they don't consolidate and they don't embrace the theme, they are going to be in some serious trouble."
No comments:
Post a Comment