Shulou(Shulou.com)11/24 Report--

January 5 news, local time Wednesday Morgan Stanley analysts said that technology companies are not good at reducing costs and efficiency, procrastination will be a drag on the entire technology industry.

The company's shares rose after software developer Salesforce announced 10 per cent layoffs on Wednesday. But until investors get too excited about controlling spending in the technology industry, Mike Wilson, a prominent Wall Street analyst, is not optimistic.

Salesforce said in a regulatory filing that its goal was to complete the human resources restructuring by the end of fiscal year 2024. Wilson, Morgan Stanley's chief US equity strategist, immediately said that technology companies were "not good at cost-cutting, they are growth companies".

"they want to invest actively at any time," Wilson said. they are not good at cutting costs, and they will do it very late. "it will take longer than you think, and the decline in profit margins in these areas may be more severe."

In last year's Institutional Investor survey, Wilson ranked first in bearish forecasts for the technology industry. He still believes that as consumer spending continues to decline and the overall economy slows, the s & p will continue to fall by about 20 per cent to about 3000 before recovering later this year.

"all business is for profit," he said. "We will face a serious decline in profits so that companies that are cost-effective can continue to perform."

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