tl;dr
Investors should keep focus on megacap tech stocks in what looks to be a choppy broader market in the near term, according to Goldman Sachs' head of hedge fund coverage. Of the Magnificent 7, Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) (GOOGL), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) ended...
Investors should keep focus on megacap tech stocks in what looks to be a choppy broader market in the near term, according to Goldman Sachs' head of hedge fund coverage. Of the Magnificent 7, Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) (GOOGL), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) ended the week higher. Meta (META) fell nearly 8% following concerns about guidance. While "certainly not uniform, this cohort continues to do what it does best," Tony Pasquariello wrote in a note. "TSLA was clearly better-than-feared with a notable beat on gross margins,.. META was hit hard on a Q2 guidance miss and higher costs (then again, do you want to compete with their $35-40bn of capex) ... MSFT was a clean beat with strength in the best places ... GOOG was also a clean beat and can tell a story of capital return that delights (an incremental $70bn to the buyback and the initiation of a dividend)." While "tech earnings make clear that we shouldn’t constrain our imagination, my instinct is upside convexity on the broad market will be limited for a bit, particularly as the market wrestles with the 'last mile' questions around inflation," Pasquariello said. "I expect that S&P (NYSEARCA:SPY) (IVV) (VOO) will continue to chop around in the next phase of the game, and the best money will be made at the single stock/sector/thematic levels of the stack (within that, keep your eye on the ball that is US mega cap tech)," he added. Pasquariello says he continues to prefer the U.S. market over the rest of the world, large-caps over small-caps (IWM), high quality over low quality and cyclicals over defensives, saying "this mix embeds an overt bias towards US tech."
More about Apple Inc
More about Amazon.com Inc
Amazon.com Inc Summary Amazon.com Inc Summary
Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.
Sector: TRADE & SERVICES
Industry: RETAIL-CATALOG & MAIL-ORDER HOUSES
Market Cap: 1868532941000
Price: 62.15
Dividend: None
P/E Ratio: 2.89
EPS: 55.78
PEG Ratio: 0.0529
Revenue: 574784995000
Net Income: 212.71
EBITDA: 50.69
Profit Margin: 0.139
More about 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.
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Market Cap: 2,147,728,884,000
Dividend Yield: 29.95
Price to Earnings Ratio: None
Return on Equity: 5.8%
Current Ratio: 25.37
Debt to Equity Ratio: 0.259
Revenue: 318,145,987,000
EPS: 165.29
Volatility: 0.61
Beta: 0.154
More about Alphabet Inc Class A
Alphabet Inc Class A Summary Alphabet Inc Class A
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.
Industry
Technology, Services-Computer Programming, Data Processing, etc.
Market Cap
$214.77 billion
PE Ratio
29.7
Dividend Yield
None
52-Week High
$166.71
52-Week Low
$25.37
Price to Sales Ratio
0.259
Market Cap (intraday)
$318.15 billion
Beta (5Y Monthly)
0.61
EPS (TTM)
$5.79
Forward Dividend & Yield
0.154
More about Microsoft Corporation
Microsoft Corporation is an American multinational technology company known for its production of computer software, consumer electronics, personal computers, and related services. Its notable software products include the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. The company's flagship hardware products include the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers.
In the 2020 Fortune 500 rankings, Microsoft secured the 21st position among the largest United States corporations by total revenue. As of 2016, it held the status of the world's largest software maker by revenue. In the U.S. information technology industry, Microsoft is regarded as one of the Big Five companies, alongside Google, Apple, Amazon, and Facebook.
Industry: Technology
Sector: Services-Prepackaged Software
Market Cap: 301.99B
P/E Ratio: 35.21
EPS: 2.93
Dividend (Yield): 11.54 (2.93%)
Beta: 31.83
Shares Outstanding: 0.364B
Public Float: 236.58B
Book Value: 993B
Revenue: 462.44B
1-Year Target Est: 0.2
52-Week Range: 0.17
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.
Sector: Manufacturing, Semiconductors & Related Devices
Market Cap: $219.34 billion
Current Price: $73.54
Price Change: $0.16
PE Ratio: 11.93
EPS: $24.68
Dividend Yield: 0.488%
Revenue: $60.92 billion
Net Income: $1.006 billion
Operating Margin: 7.61%
Debt to Equity: 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: 536.71 billion
PE Ratio: 43.15
Dividend Yield: None
Beta: 3.9
EPS: 29.8
Profit Margin: 14.4%
Revenue: 94.75 billion
Operating Margin: 17.47%
Return on Equity: -0.534
Return on Assets: -0.087
More about Meta Platforms Inc.
Meta Platforms Inc. Analysis Meta Platforms Inc. Analysis Summary
Meta Platforms, Inc. develops products for global connectivity through various devices.
Sector: TECHNOLOGY
Services: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Market Cap: $1.12 trillion
Current Price: $25.51
Price Change: 0.5
Dividend Yield: 1.141%
52-Week Range: $17.38 - $55.67
RSI: 55.67
Volume: 142,711,996
Average Volume: 517.4
Beta: 0.321
EPS: $0.273
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