Jason Ware

So, you know, maybe we're back to the Mag 7.

I don't know.

But I feel like that rotation away from tech has been more enduring.

But we're looking at some really interesting valuations now.

I mean, I think the sell-off in the Mag 7 –

we got earnings going up for the mag seven, we have price going down.

So now we have these really interesting valuations and PE multiples that I think, you know, starting with new money here today, I'm more bullish on tech and mag seven than I was at the end of December, simply for the reason of valuation.

So I wouldn't be surprised to see a bit of a catch up here in that tech trade.

Yeah, I think it's two things.

A, I think they've been caught up in the software trade, which I don't agree with.

We own Microsoft.

I think that is over-extrapolating, throwing the baby out with the bathwater, whatever aphorism you want to use.

But I think A, it's software.

And then B, I think what used to be an asset for them, which was this close relationship with Sam Altman and OpenAI, has become kind of a liability.

And so the stock has re-rated based on those two things.

If you look at the growth in Azure, the cloud business, which of course is very important, it's been tracking at a very impressive pace.

But I think the acceleration of cloud, investors want to see more there than they've been able to deliver on.

And I think when you look at valuation, the stock at the highs was trading at 32, 33 times.

And that was just too high of a PE multiple relative to those two or three things that have investors a little bit more guarded.

Yeah, I mean, it's just not well received.