Michael Yoshikami, founder and CEO of Destination Wealth Management, said it is natural for profit-taking in tech, since it has seen an “incredible rally.”
He called Wednesday’s action “just rotation” and not necessarily the beginning of a trend. However, he thinks a trend rotation is “inevitable” since tax cuts will benefit those stocks that have more earning relative to their value.
However, he echoed Bobrinskoy’s comments.
“Momentum works until it doesn’t. And when it doesn’t work, if the fundamentals aren’t there, it can get very scary. So you have to be cautious with these types of names,” he said.
Noted tech observer Gene Munster, managing partner at Loop Ventures and a former analyst at Piper Jaffray, also believes the pullback in tech is understandable since it’s had such a big run.
However, he isn’t concerned.
“I don’t think it changes some of the fundamental opportunities around some of these big names,” Munster said in an interview with “Power Lunch.”
— CNBC’s Fred Imbert contributed to this report.