One of the major trends of this bull market has been the strong performance of the major tech stocks. With dozens of major earnings reports being released in the past few weeks, perhaps none were as sought after as those of Amazon, Microsoft and Alphabet. Well, those earnings came out and it looks like those companies did tremendously well.
CNBC reports that:
Leading the [Nasdaq] higher were shares of Amazon, Microsoft and Google-parent Alphabet; their stocks rose 8.1 percent, 6.5 percent and 4 percent, respectively.
This growth is incredible. While investors may have expected these companies to outperform their projections, these numbers mean that the major tech companies are operating on an entirely different plane.
Reuters news writes that:
Amazon, Microsoft, Alphabet and Intel together generated more than $100 billion in revenue in the September quarter, roughly 2 percent of United States’ national output.
Any time there are three companies that can single-handedly change the economic fabric of a country, people should take notice.
In addition to this statement, Reuters reports that several analysts from Credit Suisse to Deutsche Bank have all raised their expectations for these companies in light of their performance. This will only build up investor excitement going forward and could cause a lot of people to get on the bandwagon.
If you are a tech investor, this news could mean two things. The first is that your investments have done incredibly well this morning and that you are likely well on your way to even more gains. The second is that if you missed out on owning these stocks before earnings, not only did you miss out on the incredible one day growth, but the entry cost for all of these companies just got much higher.
Even if you fall into the second category, the projections by the previously mentioned banks should give investors some confidence that the gains could continue into the next 12 months.
To read CNBC’s article about the massive gains made by the big tech stocks, click here.
To read Reuters’ article about the expanding potential for tech stocks, click here.
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