Up 13%- You Can Always Count on Big Tech
Another story of Big Tech driving the broader market. We just saw this story on Tuesday.
On 26th July,
$Wal-Mart(WMT)$ lowered its guidance and the broader market fell.
After the bell $Microsoft(MSFT)$ and $Alphabet(GOOG)$ released earnings that slightly missed expectations but reassured investors and the $NASDAQ(.IXIC)$ jumped 4%.
Nasdaq jumped 4%
Yesterday,
2Q GDP data was released at -0.9% YoY, below expectations of +0.5%. Stocks began to fall, with Chinese stocks falling more. As of close, most companies closed slightly higher.
After the bell, $Apple(AAPL)$ and $Amazon.com(AMZN)$ released their earnings, Amazon jumped 13% and its price has surpassed the previous high of $125.
Poster made by Tiger_chat
Why did big tech rise although they missed expectations?
1) Market sentiment has improved since last week's 3-day winning streak.
2) The market has priced in expectations that it may miss, and the valuation has fallen before due to the decline, big tech has no more room to fall.
3) Stable revenue and business.
But small companies still have room to fall:
For example, $Teladoc Health Inc.(TDOC)$ plunged 17%.
1) Under the background of economic headwinds, many companies have not achieved stable profits. Their earnings may disappoint the market
2) Valuation is too high, the share price may fall further
Bottom Line
Data from tradingview
Big tech such as $Tesla Motors(TSLA)$ , $Microsoft(MSFT)$ , $Alphabet(GOOG)$ , $Apple(AAPL)$ all delivered a "not bad earnings" in this earnings season.
In the economic headwinds, we can always count on big tech!
Do you think big tech is your first pick?
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Also, big tech will rebounce the most after a bear 🐻 market [Doubt]?
At least that's what I heard [Grin].
Better than all the rest
Small tech can be multi-bagger
But Big tech is always more stable
Buy low, sell high is the game
If you buy undervalued, it's all the same 😄
目前似乎有一种从价值股到成长股的轮替，尤其是像苹果、亚马逊和微软这样的大型科技股。像这三只股票这样的大科技股从根本上来说非常强劲。它们是盈利的，拥有非常强大的资产负债表和自由现金流，能够承受市场的波动。
然而，我认为这不是市场底部，而是熊市反弹。展望未来，这在很大程度上取决于通胀不会继续上升的信号、强劲的经济数据和美联储对利率的行动。
尽管如此，我还是看好苹果、微软和亚马逊，因为它们在动荡时期具有弹性。事实上，它们可以被视为防御性股票，因为它们有强大的护城河和优秀的管理。他们在我的定罪名单上，因为我的时间跨度至少是10到20年。重要的是市场中的时间，而不是市场的时机。
@Tiger_chat @TigerStars @CaptainTiger