tl;dr
Goldman Sachs is evaluating the performance of the Magnificent 7, including Apple Inc., Amazon.com, Alphabet Inc., Meta Platforms, Microsoft Corporation, NVIDIA Corporation, and Tesla, compared to the S&P 500. Strategist David Kostin emphasizes the sustainability of the group's 30x P/E multiple and ...
Goldman Sachs is evaluating the performance of the Magnificent 7, including Apple Inc., Amazon.com, Alphabet Inc., Meta Platforms, Microsoft Corporation, NVIDIA Corporation, and Tesla, compared to the S&P 500. Strategist David Kostin emphasizes the sustainability of the group's 30x P/E multiple and the potential for continued revenue growth to be the primary driver of returns.
Comparisons are made to the Dot Com boom of 2000, highlighting the importance of exceeding market consensus and re-investment for growth. The article brings attention to the varying consensus growth estimates across the group and the differences in earnings yield gap between the Magnificent 7 and the Tech Bubble 5, while emphasizing the importance of analyzing past market performance.
More about Apple Inc
Apple Inc. is a leading American multinational technology company with a strong focus on consumer electronics, computer software, and online services. With a revenue of $274.5 billion in 2020, Apple is the world's largest technology company and the most valuable company as of January 2021. As the fourth-largest PC vendor by unit sales and smartphone manufacturer, Apple holds a significant position in the global market. The company's stock performance has been positive, with a current stock price of $200.27 and a 0.16% increase. However, market sentiment remains uncertain, with a Relative Strength Index (RSI) of 28.9 indicating a bearish trend. While Apple's financial metrics are strong, investors should be cautious of potential risks and uncertainties in the market.
More about Amazon.com Inc
Amazon.com Inc is a prominent player in the retail-catalog & mail-order industry, with a market capitalization of $1.78 trillion. The stock has shown a positive performance, with a current price of $183.67, up 2.9% from the previous close. The Relative Strength Index (RSI) of 55.78 indicates a neutral sentiment in the market. However, the stock is trading below its 50-day moving average, suggesting a potential bearish trend. Investors should exercise caution and consider the potential risks associated with this analysis, as past market behavior is not always indicative of future performance.
More about Alphabet Inc Class C
Alphabet Inc. Class C is a multinational conglomerate in the technology sector, with a market capitalization of $1.78 trillion. The stock is currently trading at $24.75 with a 5.8% change in the last trading session. The Relative Strength Index (RSI) is at 24.34, indicating an oversold condition. The company's market sentiment is bullish, with a strong upward trend in stock performance. However, it is important to note that past market behavior is not always a reliable indicator of future performance, and there are potential risks and uncertainties associated with this analysis.
More about Alphabet Inc Class A
Alphabet Inc. Class A is a technology company with a market cap of $1.78 trillion and a stock price of $1776.85. The stock has shown a 24.59% increase in the last year and a 5.79% increase in the last quarter, outperforming the market. The Relative Strength Index (RSI) is 59.83, indicating a neutral sentiment. The stock is currently trading near its resistance level of $1770, suggesting a potential breakout if it surpasses this level. However, with a Bollinger Bands width of 0.56, the stock is showing low volatility and may indicate a potential consolidation phase. Given the strong performance and market sentiment, the stock is currently in a bullish trend, but investors should be cautious of potential risks and uncertainties in the market.
More about Meta Platforms Inc.
Meta Platforms Inc. (formerly Facebook) is a technology company that develops products for social media and connectivity. With a market cap of $1.21 trillion and a current stock price of $392.71, the company has had a strong performance in the market. The stock has shown a 52-week range of $252.41 to $392.71, indicating a significant increase in value over the past year. The Relative Strength Index (RSI) of 31.96 suggests that the stock is currently oversold, while the Bollinger Bands show a narrow range, indicating potential price volatility. The company's focus on virtual reality, wearables, and home devices has contributed to its growth, and the market sentiment appears to be bullish. However, there are potential risks associated with regulatory scrutiny and privacy concerns, which may impact future performance. Overall, Meta Platforms Inc. has shown strong financial metrics and stock performance, but investors should be mindful of potential uncertainties in the market.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company with a market cap of 3.06 trillion. The stock is currently trading at $449.47, with a 52-week range of $227.58 to $449.47. The company has a Price to Earnings (P/E) ratio of 37.18 and a forward P/E ratio of 30.61, indicating a relatively high valuation. Microsoft's revenue for the trailing twelve months is 305.55 billion, with a profit margin of 11.06% and an operating margin of 33.2%. The company has a strong balance sheet with a current ratio of 2.86, reflecting its ability to cover short-term liabilities. Microsoft's stock has been in a bullish trend, supported by its strong financial performance and market dominance in the technology industry.
More about NVIDIA Corporation
NVIDIA Corporation is a leading technology company in the manufacturing and semiconductors industry, with a market cap of $163.42 billion. The stock is currently trading at $646.89, with a 0.16% change and a 7.61% dividend yield. The company has a strong relative strength index (RSI) of 18.18, indicating bullish market sentiment. The stock has shown resilience and has broken through key resistance levels, indicating potential for further upside. However, it's important to note that past performance is not always indicative of future results, and there are inherent risks associated with investing in the stock market. Investors should closely monitor market trends and indicators to make informed decisions.
More about Tesla Inc
Tesla Inc, a prominent American electric vehicle and clean energy company, had a strong performance in 2020, capturing 16% of the plug-in market and 23% of the battery-electric market. The company also had the highest sales in the plug-in and battery electric passenger car segments. Tesla Energy, a subsidiary of the company, is a major installer of solar photovoltaic energy generation systems in the United States and is one of the largest global suppliers of battery energy storage systems, supplying 3 GWh of battery storage in 2020. The company's stock performance has been positive, with a market cap of $598.45 billion and a stock price of $210.30. The manufacturing sector, specifically in motor vehicles and passenger car bodies, has seen significant growth. However, it's essential to consider potential risks and uncertainties associated with the stock, as past market behavior is not always a reliable indicator of future performance.
More about Cisco Systems Inc
Key Financial Metrics:
- Market Cap: $203.9 billion
- Price-to-Earnings Ratio: 15.16
- Dividend Yield: 3.31%
- EPS: $1.55
- Beta: 0.234
- Revenue: $58.03 billion
- Profit Margin: 54.06%
- Return on Equity: 0.369
- Debt-to-Equity Ratio: 0.076
Stock Performance:
- Cisco Systems, Inc. is a leader in the computer communications equipment industry.
- The stock has a moderate P/E ratio and a solid dividend yield.
- Market sentiment is positive due to the company's strong revenue and high profit margin.
Market Sentiment:
- The company's focus on specific tech markets and its reincorporation in Delaware may indicate a strategic shift and potential growth opportunities.
- Potential risks or uncertainties include competition in the tech industry and the rapidly evolving nature of technology markets.
More about General Electric Company
General Electric Company (GE) is a multinational conglomerate with a strong presence in the aviation, healthcare, power, renewable energy, digital industry, additive manufacturing, and venture capital and finance sectors. In terms of financial metrics, GE has a market cap of $148.6 billion, a current stock price of $17.13, and a dividend yield of 0.32%. The company has a price-to-earnings ratio of 7.97 and a beta of 0.14. GE also has a total debt of $67.95 billion and a current ratio of 139.55, indicating strong liquidity.
From a stock performance perspective, GE has shown a negative return on equity of -23.2% and a positive return on assets of 15.4%. Market sentiment towards GE is mixed, with potential risks and uncertainties associated with the company's financial performance and market position. It is important to note that past market behavior is not always a reliable indicator of future performance, and investors should carefully consider these factors before making any investment decisions.
More about Intel Corporation
Key Financial Metrics:
- Market Cap: $180.11 billion
- Stock Price: $106.5
- Dividend Yield: 0.74%
- P/E Ratio: 12.94
- EPS: $0.40
- Revenue: $54.23 billion
Stock Performance:
- Current Price: $106.5
- 52-week High: $143.66
- 52-week Low: $43.66
- Change from 52-week High: -25.7%
Market Sentiment:
- Intel Corporation is the world's largest semiconductor chip manufacturer by revenue
- The company develops the x86 series of microprocessors, found in most personal computers
- Despite strong market position, stock has experienced a 25.7% decline from its 52-week high
- Industry trends and competition may pose potential risks to future performance
More about Exxon Mobil Corp
Exxon Mobil Corp is a major player in the energy and transportation sector, primarily focused on petroleum refining. With a market capitalization of $404.92 billion and a stock price of $83.46, the company has shown a 3.68% increase in its stock performance. However, the Relative Strength Index (RSI) of 125.12 indicates an overbought condition, suggesting a potential reversal in the stock's bullish trend. The company's net income of $338.20 billion and earnings per share of $11.47 reflect strong financials. Despite these positive indicators, it's important to note a bearish trend with a decrease of 0.381 in the stock's performance, signaling potential risks and uncertainties in the market sentiment. As such, caution should be exercised when considering investment in Exxon Mobil Corp.
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