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Is Tech Stock Still Dominating?
Big tech Q4 earnings are in. It started with Alphabet and Microsoft performing above expectations, but stocks still lost value due to lacklustre investor sentiment still riding the “massive highs wave” from last year.
Alphabet exceeded previous earnings at $72 million. Despite this, the stock dropped 5% as investors focused on the decrease in ad sales instead of the whole picture.
Microsoft showed above-expected returns of $62 million, mainly due to its AI and cloud revenue. Last year, shares skyrocketed by 50% due to the AI trend.
Meta stock prices soared after reporting. Earnings amounted to $40.11 billion, almost $8 billion more than the previous quarter a year ago. Shares gained more than 12% after the report.
Amazon’s stock climbed 8% after earnings were reported at $170 billion. Almost $4 billion higher than expected. This was largely due to a record-breaking holiday shopping season.
Like Alphabet, Apple shares dropped despite exceeding revenue expectations. This could be attributed to the drop in sales in China, Apple’s third largest market after the US and Europe after government employees were banned from using Apple products several months ago.
The results prove that Tech and AI are still very much investors’ favourite stocks and cement the future of AI in everyday life. There are buying opportunities for investors to get some of the “Big 7” stocks at lower prices, like Alphabet, AMD and Microsoft. This can benefit investors with higher returns in the future.
Maintaining a diversified investment portfolio is still the best way to mitigate losses with the current global market uncertainty. In volatile markets, seek the advice of a financial advisor before making any investment decisions.
The above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.
*No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.