tl;dr
UBS has downgraded Apple (NASDAQ:AAPL), Amazon (AMZN), Alphabet (GOOG)(GOOGL), Meta Platforms (META), Microsoft (MSFT), and Nvidia (NVDA) to Neutral from Overweight citing earnings momentum reversal. From its January 2023 lows to its April 2024 peak, Big 6 TECH stocks (Apple, Amazon, Alphabet, Meta...
UBS has downgraded Apple (NASDAQ:AAPL), Amazon (AMZN), Alphabet (GOOG)(GOOGL), Meta Platforms (META), Microsoft (MSFT), and Nvidia (NVDA) to Neutral from Overweight citing earnings momentum reversal. From its January 2023 lows to its April 2024 peak, Big 6 TECH stocks (Apple, Amazon, Alphabet, Meta, Microsoft, and Nvidia) advanced 117%. They have since declined 8%, said a group of strategists led by Jonathan Golub in a research note. Each of these stocks, along with Tesla (TSLA), have pulled back from their recent highs, with the electric vehicle maker down about -50% (versus peak date July 18, 2023) and Nvidia falling about -20% (versus peak date March 25). As per the analysts, TECH includes all of the Technology Sector, Internet Retail within Discretionary, and Interactive Media and Services, Interactive Home Entertainment, and Netflix (NFLX) from Movies & Entertainment within Communication Services. The analysts noted that they were downgrading Big 6 on earnings momentum reversal. "Investors attribute the run in mega cap stocks to animal spirits and the impact of AI; however, our work indicates that surging earnings momentum (change in forward growth projections) fueled this upside," said Golub and his team. However, according to the analysts, this momentum is collapsing, with Big 6 EPS growth expected to decline from 42% to 16% over the next year, while the rest of TECH and non-TECH stocks accelerate. The analysts noted that their downgrade of the Big 6 was not predicated on extended valuations or doubts about AI. However, it is an acknowledgement of the difficult comps and cyclical forces weighing on these stocks. These forces do not apply to other TECH companies or the rest of the market in the same way. Apple (AAPL) has a Hold rating at Seeking Alpha's Quant Rating system, which consistently beats the market. The Seeking Alpha authors' average rating is also Hold, however, the average Wall Street analysts' rating is more positive with a Buy rating.
More about Apple Inc
Apple Inc. is an American multinational technology company that specializes in consumer electronics, computer software, and online services. As of 2021, Apple is the world's largest technology company by revenue, totaling $274.5 billion in 2020, and the world's most valuable company since January 2021. It is also the world's fourth-largest PC vendor by unit sales and the fourth-largest smartphone manufacturer. Apple is one of the Big Five American information technology companies, along with Amazon, Google, Microsoft, and Facebook.
Industry: Technology
Sub-industries: Electronic, Computers
Revenue: $254.79 billion
Price per share: $25.66
Dividend yield: 0.95%
Market capitalization: $6.43 billion
EPS: $24.65
P/E ratio: 0.262
Shares outstanding: 385.706 million
Market price: $199.41
Book value per share: $0.16
Dividend per share: $0.021
More about Amazon.com Inc
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Company: Amazon.com Inc
Industry: Trade & Services
Sector: Retail-Catalog & Mail-Order Houses
Market Cap: 1,816,623,579,000
Current Price: $3,467.42
Dividend Yield: None
P/E Ratio: 2.9
52-Week High: $3,773.08
52-Week Low: $2,871.00
Price/Book: 55.78
EPS: 0.0529
Volume: 574,784,995
50-Day Moving Avg: $3,367.32
200-Day Moving Avg: $3,197.69
RSI (14): 50.69
Beta: 0.139
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More about Alphabet Inc Class C
Alphabet Inc Class C
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Key Statistics
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Market Cap: 1,925,259,723,000
PE Ratio: 26.89
Dividend Yield: None
Beta: 5.79
EPS: 24.34
Shares Outstanding: 0.24
Public Float: 307,393,987,000
Book Value: 165.29
Price to Book: 0.56
Short Interest Ratio: 0.135
More about Alphabet Inc Class A
Alphabet Inc. Stock Analysis Alphabet Inc. Class A Stock Analysis
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Company Information
Sector: Technology
Industry: Services - Computer Programming, Data Processing, etc.
Stock Performance Data
Market Cap: $1,924,861,395,000
PE Ratio: 26.61
Dividend Yield: None
Beta: 5.79
EPS: 24.34
ROE: 0.24
Volume: 307,393,987,000
Stock Price: $166.24
Change: 0.56
Change %: 0.135
More about Meta Platforms Inc.
Meta Platforms, Inc. (formerly Facebook) is a technology company headquartered in Menlo Park, California. The company develops products for connecting and sharing through various devices worldwide.
Sector: Technology
Industry: Services-Computer Programming, Data Processing, etc.
Market Cap: $1.22 trillion
Current Price: $32.37
Dividend Yield: 0%
Price/Earnings Ratio: 14.86
52-Week High: $52.41
52-Week Low: $29.29
Volume: 134,901,998
Average Volume: 531.54 million
Relative Strength Index (RSI): 2.002
Volatility: 0.247
More about Microsoft Corporation
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Sector: TECHNOLOGY
Industry: SERVICES-PREPACKAGED SOFTWARE
Market Cap: 296.56 Billion
Price: $36.09
Change: $2.86
Change %: 11.06%
52-Week High: $30.61
52-Week Low: $0.363
Shares Outstanding: 2.28 Billion
Public Float: 1.00 Billion
Beta: 0.332
Rev. per Employee: $462.44 Thousand
P/E Ratio: 0.176
More about NVIDIA Corporation
NVIDIA Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
Industry: Manufacturing, Semiconductors & Related Devices
Market Cap: $190.5 billion
Stock Price: $550.00
Change: $0.16
PE Ratio: 11.96
EPS: $24.68
Dividend Yield: 0.488%
Revenue: $60.92 billion
Net Income: $1.003 billion
ROE: 7.61%
Beta: 2.653
More about Tesla Inc
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.
Industry: MANUFACTURING, MOTOR VEHICLES & PASSENGER CAR BODIES
Market Cap: 468.32 billion
Current Price: $34.28
Dividend Yield: None
P/E Ratio: 4.29
52-Week High: $30.49
52-Week Low: $0.155
Revenue: 96.77 billion
EPS: $183.14
Volatility: 1.115
Beta: 0.035
More about Netflix Inc
Netflix, Inc. (NFLX) is an American over-the-top content platform and production company based in Los Gatos, California. Founded in 1997 by Reed Hastings and Marc Randolph, the company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including in-house productions.
Sector: Trade & Services
Industry: Services-Video Tape Rental
Market Cap: 239.17B
Current Price: $46.06
Dividend Yield: None
P/E Ratio: 12.05
52-Week Range: $79.7 - $184
EPS: 349.32
Volume: 32,320,000
Avg. Volume: 634.58
Beta: 0.833
Payout Ratio: 0.148
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