Sumary of Investors should look for stocks tied to ‘data era enablers’ as companies step up investment in IT infrastructure post-pandemic, Morgan Stanley says:
- An IT spending supercycle is underway and stocks that can ride that wave will beat the market, Morgan Stanley says.
- The bank’s analysts pointed to an “unprecedented spike” in tech investment during the pandemic.
- Data era adopters – like Amazon, Disney, and the New York Times – will benefit the most over the long run, they wrote.
- An IT spending supercycle is underway and stocks that can ride that wave will beat the market, Morgan Stanley analysts wrote in a note on Thursday.
- Morgan Stanley sees a coming multi-decade “data era” characterized by a surge in tech investment by non-tech companies, on a similar scale to the internet’s initial rollout.
- Such historic IT spending is likely to boost both “enabler” companies that provide tech and “adopter” companies that deploy it well.