5 Technology Investing Trends for 2023 | Morgan Stanley (2024)

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5 Technology Investing Trends for 2023 | Morgan Stanley? ›

5 Technology Investing Trends for 2023

As central banks continue their campaigns to slow inflation, both the U.S. and Europe are likely to avoid recessions, but Morgan Stanley Research economists believe global GDP growth will slow to 2.9% in 2023. That is down from 3.4% in 2022, albeit better than the 2.2% growth economists predicted late last year.

Artificial Intelligence (AI) and Machine Learning (ML)

These technology trends, such as artificial intelligence (AI) and machine learning (ML), are being used in a variety of industries to improve efficiency and decision-making.

Key Takeaways. Equities and fixed income assets should find support in the second half of 2024 amid steady growth, declining inflation and interest rate cuts. European and Japanese stocks offer attractive valuations and could gain support from positive earnings revisions.

As was the case in 2023, the information technology and communications services sectors, year-to-date through mid-July 2024, continue to outperform all other S&P 500 sectors. Investors' continued enthusiasm for companies well positioned to benefit from artificial intelligence (AI) advancements is driving sector gains.

2023 Midyear Macroeconomic Outlook: Slower Global Growth

In the face of high interest rates, global GDP growth is likely to slow to 2.9% this year and stay lackluster in 2024.

Morgan Stanley's net new assets for 2023 fell below the $300 billion mark it recently set as an annual goal on its way to having $10 trillion under management. Even so, the Wall Street giant's wealth management unit remained the star among its many business divisions.

In fact, 97% of our clients say they are satisfied with the firm, and 98% are satisfied with how their Morgan Stanley Financial Advisor handles questions and requests. And, nine in 10 Morgan Stanley clients surveyed say they felt prepared financially for the COVID-19 crisis.

The average price target for Morgan Stanley is $111.87. This is based on 19 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $124.00 ,the lowest forecast is $91.00. The average price target represents 8.09% Increase from the current price of $103.5.

The cash flow statement reveals that Morgan Stanley repurchased $1.3 billion of its outstanding common stock, highlighting its confidence in its financial stability. Morgan Stanley's journey through 2024 appears cautiously optimistic.

What are the 7 big tech stocks? ›

The Magnificent 7 stocks rode triumphantly back into town on Monday after a rough week. These large-capitalization technology companies— Apple, Amazon, Google-parent Alphabet, Nvidia, Facebook-parent Meta Platforms, Microsoft, and Tesla —did most of the heavy lifting for the stock market over the past two years.

Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent.

MS Stock 12 Month Forecast

Based on 17 Wall Street analysts offering 12 month price targets for Morgan Stanley in the last 3 months. The average price target is $112.54 with a high forecast of $121.00 and a low forecast of $99.00. The average price target represents a 10.24% change from the last price of $102.09.

Fixed income and equity performance significantly improved in 2023 versus 2022. Using the Bloomberg US Treasury Index as the proxy, fixed income returns were 4.05% and equity returns were 26.29% in 2023, compared with -12.46% and -18.11%, respectively, in 2022 (Exhibits 5 & 6).

M&A activity to increase in 2H 2023

M&A activity typically picks up pace in the last quarter of the year, seeking closure on open transactions. With low volume expected to have continued in 4Q 2022, 2022 is expected to have closed with deal volume at the historical average.