STOCKS | UBS Sees Tech Resilience Despite Meta Pivot Speculation

UBS’s Nadia Lovell said the tech sector remains resilient despite recent volatility tied to speculation about a strategic pivot by Meta, according to Bloomberg. Lovell said concerns that hyperscalers may have overbuilt cloud capacity without matching monetization could be eased if excess capacity is offloaded, which she views as constructive for capital efficiency and margins over time. She added that cloud demand remains strong, citing robust cloud revenue growth among hyperscalers and rising US enterprise adoption. Despite a selloff in some cloud-related stocks, Lovell said capital expenditure plans for this year and next are largely set, with limited upside but no immediate slowdown.