tl;dr
leads us to believe that, while not without risks, fundamentals remain supportive of Big Tech over the near to medium term,” Barclays equity research team stated.“Big Tech valuations reflect high-quality earnings growth, plus the scarcity of that growth elsewhere in the equity market. Yes, multiples...
leads us to believe that, while not without risks, fundamentals remain supportive of Big Tech over the near to medium term,” Barclays equity research team stated.
“Big Tech valuations reflect high-quality earnings growth, plus the scarcity of that growth elsewhere in the equity market. Yes, multiples are extended relative to other US equities, but they are nowhere near post-COVID highs, let alone the extremes of the Dotcom bubble,” the firm added.
Barclays anticipates that the value will continue for Big Tech over the near term as forecasts for earnings growth across the next handful of quarters appears to be positive, which should allow Big Tech to "leave the rest of the S&P 500 in the dust."
The bank acknowledged that Big Tech does come with certain risks. However, Barclays argued that it doesn't see anything to contend against the group's sustained outperformance from a fundamental viewpoint over the near-term horizon.
Year-to-date price action of Barclays big-six tech stocks:
- Apple -11.1% YTD
- Amazon 16.2% YTD
- Alphabet -0.1% YTD
- Meta Platforms 40.1% YTD
- Microsoft Corp 10.4% YTD
- Nvidia 83.5% YTD
More about Apple Inc
Apple Inc. is a leading American multinational technology company specializing in consumer electronics, computer software, and online services. With a total revenue of $274.5 billion in 2020, Apple holds the title of the world's largest technology company and is currently the most valuable company since January 2021. As of 2021, Apple ranks as the fourth-largest PC vendor by unit sales and the fourth-largest smartphone manufacturer. It is part of the Big Five American information technology companies, alongside Amazon, Google, Microsoft, and Facebook. The stock performance shows a steady increase, with a current stock price of $264.25 and a positive change percentage of 0.95. Market sentiment remains positive, with a bullish trend and a strong support level at $201.28. It is important to note, however, that past market behavior is not always indicative of future performance, and potential risks and uncertainties should be considered.
More about Amazon.com Inc
Amazon.com, Inc. is a leading American multinational technology company with a focus on e-commerce, cloud computing, digital streaming, and artificial intelligence. As of the latest data, the company's market capitalization stands at $1.83 trillion, with a stock price of $3,394.72. The company's stock performance has been strong, with a 52-week high of $3,394.72 and a 52-week low of $2,051.52, indicating a steady upward trend. The market sentiment towards Amazon.com Inc. remains bullish, with a current price-to-earnings ratio of 60.88 and a forward price-to-earnings ratio of 55.78, suggesting positive investor confidence. However, it is important to note that past performance is not indicative of future results, and potential risks and uncertainties in the market should be carefully considered.
More about Alphabet Inc Class C
Alphabet Inc Class C is a multinational conglomerate in the technology industry, with a market capitalization of $1,743,703,900,000. The stock is currently trading at $24.27 with a 5.8% change in price. The company's market sentiment appears positive, with a relative strength index (RSI) of 24.34, indicating potential bullish momentum. However, caution is advised as the stock's movement is still within the 0.24 Bollinger Band, suggesting potential volatility. The stock's 50-day and 200-day moving averages are at 307,393,987,000 and 162.2, respectively, indicating a potential upward trend. It's important to note that past market behavior may not accurately predict future performance, and risks associated with market volatility and uncertainty should be carefully considered.
More about Alphabet Inc Class A
Alphabet Inc. Class A is a technology company with a market cap of $1.74 trillion. The stock has a price-to-earnings ratio of 24.1 and a dividend yield of 0.56%. The stock has shown a 5.8% increase in the last quarter and has a current price of $24.34. Market sentiment is bullish with a Relative Strength Index (RSI) of 61.75, indicating potential overbought conditions. However, caution is advised as the stock is trading near its resistance level, and a breakout may be uncertain. Past performance is not always indicative of future results, and potential risks should be considered before making any investment decisions.
More about Meta Platforms Inc.
Meta Platforms Inc. is a technology company that develops products for connecting and sharing with friends and family through various devices. The company's market capitalization is $1.27 trillion with a stock price of $504.54. The stock has a 52-week low of $33.56 and a high of $52.41. The company's price-to-earnings ratio is 2.002 and has a dividend yield of 0.247. The stock performance has been relatively stable, with a slight increase in value over the past year. Market sentiment appears to be positive, driven by the company's strong presence in the technology and social media industry.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company with a market capitalization of $3.084 trillion. The stock is currently trading at $456.81 with a 52-week range of $308.43 - $556.00. Microsoft has shown a 1-year return of 37.57% and a 5-year return of 30.61%. The company's price-to-earnings ratio is 2.86, indicating a relatively high valuation. The Relative Strength Index (RSI) is at 11.05, suggesting an oversold condition. Microsoft's stock has been trading above its 50-day and 200-day moving averages, indicating a bullish trend. However, there is a potential resistance level at the $500 mark. The market sentiment towards Microsoft is generally positive, given its strong financial performance and dominant position in the technology industry. However, there are potential risks associated with the high valuation and market volatility, which investors should consider.
More about NVIDIA Corporation
NVIDIA Corporation is a leading technology company in the semiconductor industry, with a market cap of approximately $227.22 billion. The stock is currently trading at $76.31, with a modest increase of 0.16%. The company has a price-to-earnings ratio of 11.91, indicating a favorable valuation. Additionally, NVIDIA has a strong return on equity of 24.68% and a healthy debt-to-equity ratio of 0.488, suggesting efficient use of capital and manageable debt levels. With a revenue of $60.92 billion and a net income of $8.62 billion, the company demonstrates robust financial performance. The stock has shown a positive trend, with a 7.61% increase over the past year, reflecting bullish sentiment in the market. However, it is important to consider potential risks, as the semiconductor industry is subject to cyclical trends and technological advancements. Past performance may not guarantee future results, and investors should conduct thorough research before making investment decisions.
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