tl;dr
According to Scott Chronert, Citi Research's head of U.S. equity strategy, investors should continue to hold onto the Seven stocks (Apple, Microsoft, Amazon, Nvidia, Meta, Tesla, and Alphabet), as they are contributing about 20% of the S&P 500 earnings. The business model maturation of these compani...
According to Scott Chronert, Citi Research's head of U.S. equity strategy, investors should continue to hold onto the Seven stocks (Apple, Microsoft, Amazon, Nvidia, Meta, Tesla, and Alphabet), as they are contributing about 20% of the S&P 500 earnings. The business model maturation of these companies that turn to profitability and significant growth in profitability is underpinning the market cap growth. However, the prospect of higher or lower interest rates can affect where tech multiples will be at and the direction of 10-year nominals. Citi's S&P 500 target is 51000, and they are projecting a mid-year recession and see small caps broadening and regaining its footing after several years of dormancy.
More about Apple Inc
Apple Inc. is the world's largest technology company by revenue, totaling $274.5 billion in 2020. As of January 2021, it is also the world's most valuable company.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company that produces computer software, consumer electronics, personal computers, and related services. It is best known for its Microsoft Windows line of operating systems, Microsoft Office suite, and Internet Explorer and Edge web browsers. Additionally, it has flagship hardware products like the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. As of 2020, Microsoft ranked No. 21 in the Fortune 500 rankings of the largest US corporations by total revenue. It is considered one of the Big Five companies in the US information technology industry, alongside Google, Apple, Amazon, and Facebook. The company operates in the technology and services-prepackaged software sector with a total revenue of $30,191,363,000. The stock performance shows a current price of $36.74 and a 2.86% change. The market sentiment indicates a bullish trend with an 11.06% return on equity and a 30.61% profit margin. It's important to note that past market behavior is not always a reliable indicator of future performance, and potential risks or uncertainties should be considered when analyzing this data.
More about Amazon.com Inc
Amazon.com Inc is a dominant player in the retail-catalog & mail-order industry, with a market cap of 1.776 trillion. The stock is currently trading at 58.76 with a 52-week high of 204.87 and a low of 50.69. The stock has shown a steady increase in value, with a 0.0529% increase in the last quarter. The company's strong focus on e-commerce, cloud computing, and digital streaming has positioned it as one of the most influential economic and cultural forces in the world. Market sentiment towards Amazon.com Inc is bullish, with the company being referred to as the world's most valuable brand. However, it's important to note that past performance is not always indicative of future results, and potential risks should be carefully considered before making any investment decisions.
More about NVIDIA Corporation
NVIDIA Corporation is a leading American multinational technology company in the manufacturing and semiconductors industry, with a market capitalization of $182.53 billion. The stock is currently trading at $670.26, with a 52-week range of $448.70 to $700.10. The stock has a price-to-earnings ratio of 97.11 and a forward price-to-earnings ratio of 18.18, indicating potential growth. The company's return on equity is 12.74%, highlighting its profitability. The stock has a beta of 2.055, suggesting higher volatility compared to the market. Overall, market sentiment towards NVIDIA Corporation appears bullish, with strong potential for growth in the technology and semiconductor sectors.
More about Meta Platforms Inc.
Meta Platforms Inc. (formerly Facebook) is a technology company that develops products for connecting and sharing through various devices. The company's market cap is $1.17 trillion, with a current stock price of $503.80. The stock has a 52-week range of $268.66 to $377.55 and a beta of 0.29, indicating lower volatility compared to the market. Meta Platforms Inc. has a P/E ratio of 30.96 and no dividend yield. The company's revenue is $134.90 billion, with a net income margin of 14.86% and a return on equity of 52.41%. The stock has been showing bullish trends based on technical indicators such as moving averages, RSI, and Bollinger Bands. However, it's important to note that past performance is not indicative of future results, and there may be uncertainties and risks associated with the stock's future performance.
More about Tesla Inc
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market and 23% of the battery-electric market. The company is also a major installer of solar photovoltaic energy generation systems and one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020. The stock performance data shows a market cap of $601 billion, a current price of $755 per share, and a P/E ratio of 43.89. The stock has seen a 4.3% increase in the last month and a 30.49% increase in the last year. Market sentiment is generally positive, with the company's focus on electric vehicles and clean energy contributing to its strong performance. However, there are potential risks and uncertainties associated with the stock, and past market behavior may not be a reliable indicator of future performance.
More about Alphabet Inc Class A
Alphabet Inc. Class A is a multinational conglomerate in the technology and computer programming services sector with a market capitalization of 1.82 trillion. The stock has shown a 5.81% increase in the last month, with a current price of $1,620.06. The Relative Strength Index (RSI) is at 62.06, indicating a slight bullish sentiment, but it's important to note that the stock is currently trading near its resistance level. The Bollinger Bands are showing a narrow range, suggesting a potential breakout in either direction. Given the recent price movement and technical indicators, there is a potential for a bullish trend, but investors should be cautious of the current resistance levels and market uncertainties.
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