Invesco NASDAQ 100 ETF drops 7% in October but seen as a buy on strong tech earnings growth and AI exposure.
The Invesco NASDAQ 100 ETF (QQQM) fell 7.07% in October, reflecting broad selling driven by fears around capital expenditures. Despite this, the ETF's top holdings trade at a reasonable 15.7 times next year's earnings, with strong double-digit earnings growth expected from major tech companies. The fund's heavy concentration in technology (59.2%) and its top 10 holdings (46.6% of assets) increases volatility but also offers exposure to AI and capital expenditure cycles. The analyst expects QQQM to recover to its 52-week high of $314.12 within 12 months and recommends buying more shares if prices drop to $270 or below.
The Invesco NASDAQ 100 ETF (QQQM) fell 7.07% in October, reflecting broad selling driven by fears around capital expenditures. Despite this, the ETF's top holdings trade at a reasonable 15.7 times next year's earnings, with strong double-digit earnings growth expected from major tech companies. The fund's heavy concentration in technology (59.2%) and its top 10 holdings (46.6% of assets) increases volatility but also offers exposure to AI and capital expenditure cycles. The analyst expects QQQM to recover to its 52-week high of $314.12 within 12 months and recommends buying more shares if prices drop to $270 or below.
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