Bank of America named a slew of buy-rated tech stocks ahead of earnings. The firm says investors should buy the weakness on a host of companies like Block , Spotify, PayPal and Microsoft. Block Shares of Block have plenty room to run, according to the firm. The fintech payment company’s first quarter earnings report is scheduled for May 1 with analyst Jason Kupferberg telling clients in a recent note to buy the dip. “We believe the stock is not being given enough credit for the general resilience the business has shown to date as well as its opex [operating expense] discipline,” he wrote. Kupferberg says if management cuts its top-line guidance that would be “welcomed” as it would reset the bar for already high expectations. The firm also lowered its price target to $80 per share from $94. “We reiterate our Buy rating based on business model quality, tools to protect AOI [adjusted operating income] guidance, and valuation,” he wrote. The stock is down 31% this year. Microsoft The firm is doubling down on shares of the tech giant. “Still best positioned for AI cycle,” analyst Brad Sills wrote recently. Microsoft is scheduled to unveil its third quarter earnings on April 30 and Sills says investors should stick with the stock. “The focus this quarter is likely to be on Azure guidance and capex,” the firm wrote. Azure is Microsoft’s cloud computing platform. Sills added that he believes rumors of a Microsoft pull back on capex are overdone noting that the company remains committed to “building capacity for the long term.” Meanwhile, shares are down 7% this year and Sills lowered his price target to $480 per share from $510. “Reiterate Buy on our top pick,” he said succinctly. Roblox The gaming tech company is firing on all cylinders, according to analyst Omar Dessouky. Roblox is quickly making inroads in innovation and is well positioned for further share gains, the firm said in a note recently. “RBLX’s ability to execute became clear in 2024 with numerous efficiency improvements and growth surprises,” he wrote. Dessouky says the setup for Roblox’s first quarter results on May 1 looks “favorable” with “execution likely excellent, again.” Further, the firm says Roblox is “still not [a] widely held” stock among investors. However, “that could change as investors search for secular growth resilient to tariffs or a consumer spending slowdown in 2H25,” so clients should buy Roblox now, he went on to say. Shares are up 14% this month. Block “We think a cut of 2025 top-line guidance to more achievable levels would be welcomed. We reiterate our Buy rating based on business model quality, tools to protect AOI guidance, and valuation. … .We believe the stock is not being given enough credit for the general resilience the business has shown to date as well as its opex discipline…” Microsoft “Still best positioned for AI cycle. … .The focus this quarter is likely to be on Azure guidance and capex. … .There have been rumors that Microsoft is pulling back on capex. While Microsoft is likely shifting capex within geographies, the company remains building capacity for the long term. … .Reiterate Buy on our top pick.” Spotify “We are confident that SPOT’s 1Q25 results will be at least in line with guidance on key metrics including revenue, premium subscribers and MAUs [monthly active users]. … .Notably, it is our view that SPOT’s subscription model should be more defensive/utilitylike amid the current macro uncertainty. However, recent volatility could have an impact on future advertising growth, especially since our forecasts contemplate a 2H acceleration.” PayPal “PYPL reports on 4/29. Measurable progress against strategic initiatives to accelerate branded TPV [total payment volume] is key to turning around weak sentiment, and 1Q is unlikely to be the quarter when this happens, especially amid macro turmoil. … .PYPL has a strong brand, balance sheet, and scale, and given progress on the turnaround, we rate it Buy.”
