It’s no secret that the naysayers have picked the technology sector as their latest target for criticism, this time going as far as to say there is a bubble in the entire artificial intelligence and cloud space. If everyone can see a bubble, it’s not a bubble; that’s what Wall Streeters can add to the table for these accusations. But, for those who don’t trust Wall Street’s opinion, here are other angles to consider.
Three of America’s largest investors have bought into a certain group of stocks inside the industry, and considering these investors have nothing to sell the public, knowing what they have been buying or selling can act only as an additional point of reference for investors to build or dismantle their views on specific companies. Allocators like Stanley Druckenmiller, Michael Burry, and Howard Marks have all recently taken a more optimistic view of technology stocks.
However, not all technology stocks are equal, and the typically safe exchange-traded fund (ETF) strategy might not be the best to implement in today’s doubt-ridden market. This is why these players decided to go with stocks like Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL), and Amazon.com (NASDAQ:AMZN) as the ones to carry their portfolio performance into a territory that’s even deeper in the green.
A Dip Buying View for Meta Stock?
Now that shares of Meta have fallen slightly below 80% of their 52-week high level, investors can assume that they are now in an official bearish territory, as Wall Street defines it as a 20% or more decline from recent highs. Investors need to consider, however, the vital role that Meta plays in the United States (if not the global) economy today.
With the digitization of the domestic and global economy, Meta’s services and platforms in communications and social media make it one of the most important developments to consider. This is why such a low price cannot be justified for long in the company, driving institutional buyers from today’s list to run into the stock.
Overall, up to $51 billion of institutional buying took place in Meta stock during the past quarter, reiterating the optimistic view present today. Meta must recover past the recent dips, which might have been nothing more than an association selloff next to the volatility spikes in the broader S&P 500 index.
Unusual Backing in Alphabet
Just like its peer Meta, shares of Alphabet have now crossed into that bearish territory threshold, sitting at 75% of their 52-week highs. This recent bearish price action, however, failed to convince value-driven investors on today’s list to start buying into this discounted opportunity.
Reiterating this fact is the $55 billion recorded of institutional buying in the past quarter for Alphabet, a bullish sign for the coming months as a rally might be expected. This actually makes sense in any such deal, but the real sentiment check may be found in Wall Street analyst sentiment since it contradicts the typical role of their ratings.
Analysts are typically comfortable backing stocks whose charts have been performing up and to the right, as momentum is on their side. However, there were some willing to back Alphabet stock recently despite its bearish trajectory, a contrarian view that should be taken seriously by retail investors.
As of March 2025, analysts from Roth Mkm have given Alphabet stock a Buy rating, and this time, their valuation targets also reflected a much more optimistic view of the company’s future. With a price target of up to $220 per share, these analysts have become the most bullish and most recent rating for the company.
This valuation also calls for Alphabet stock to make a new 52-week high, which should be enough to get even more momentum buyers into the company, as well as other analysts to boost the company’s rating and valuations further. Aside from a new high, this valuation also calls for a net rally of up to 42.6% from today’s low prices.
Price Action Does Not Drive Optimism From Amazon Stock
Another name below 80% of its 52-week high, but just as subject to buying from today’s list of mega investors, Amazon stock presents an interesting offer. Despite being dragged lower by the same sell-offs in the broader S&P 500, as well as some of the negativity in the consumer sector due to weakening data, Amazon stands strong. Strong by outperforming the S&P 500 over the past six months by nearly 6%.
Then, just like Alphabet, analysts are still willing to keep an optimistic outlook on this company despite its recent price action fallout. The consensus valuation is set at $260.6 today, calling for as much as 35.3% upside from today’s low prices.
On top of this optimism, there is a reason why the market is still willing to overpay for Amazon stock on a price-to-earnings (P/E) basis, trading at 34.8x compared to the retail sector’s average valuation of 23.6x today. Whenever stocks trade at a valuation premium outside of any bearish price action, reasons start to become clearer in the near future.