Despite recent gains in U.S. stocks led by tech firms, Morningstar's U.S. Markets Strategist David Sekera is underweight on the sector, citing overvaluation and concerns about specific companies like Apple, Oracle, and IBM.
Investors have been watching tech stocks keenly in the past year, amid a significant bout of volatility in the sector. Morningstar's top strategist, however, has an underweight on the sector and is staying clear of several Big Tech names. "The technology sector in and of itself is really priced to perfection," the firm's U.S. Markets Strategist David Sekera said.
The firm's caution on the stock is in stark contrast to the optimism of other veteran industry watchers . Oracle recently raised its fiscal 2026 revenue forecast to at least $66 billion, more than the $64.5 billion LSEG analysts were expecting. Morningstar's concern is that "they will end up losing market share over time to other database types," Sekera explained.
Tech Stocks Overvalued Apple Oracle IBM
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