3 reasons one Wall Street firm says to stick with cloud stocks amid the coronavirus-induced market rout

Daniel Ives of Wedbush wrote in a Monday note that cloud stocks such as Amazon and Microsoft are poised to benefit from the coronavirus pandemic.During the darkest period of a shock event with doomsday worries front and center, fundamentals and valuations get thrown out the window as pure fear and panic take over with red screens the result,” Ives wrote.However, this creates solid buying opportunities for tech investors “with the risk tolerance and patience to own the tech names with attractive risk/rewards, strong secular themes, and stress tested models,” he said.
Here are three reasons Ives likes cloud stocks.Read more on Business Insider.There are still bright spots in the market even amid the coronavirus-induced rout, according to one Wall Street firm.We believe having a playbook of tech themes and stocks that can navigate this dark storm remain the best way to invest in this landscape,” Daniel Ives of Wedbush wrote in a Monday note. In particular, Ives sees opportunities in cloud themes in the “dark storm,” he said.Ives has long argued that tech stocks will stand the test of time and be able to recover amid the coronavirus pandemic. In a note Monday, he broke down reasons why cloud computing is poised to surge as the coronavirus increases the number of people working and learning from home while social-distancing measures prevail to curb the spread of COVID-19.