Tech Giants through simple Technical Review
Last week, a few tech giants released their earnings, notably Meta, Google, Microsoft, Intel, etc... Next week, we will have another few like Amazon and Apple.
Meta
Meta disappointed investors last Wednesday with forecasts of higher spending and lower-than-expected revenue, raising concerns that rising costs associated with developing artificial intelligence could outweigh its benefits. The company raised its forecast for expenses this year to support investments in new AI products and the computing infrastructure needed to support them, adding that it expected spending would continue to increase next year. For such, I am short and mid term bearish for $Meta Platforms, Inc.(META)$
Meta daily chart
If we look at its technical chart, the stock gapped down for over 10% after its earnings. Usually, such behaviour will result in short term bearish movement and a consolidation might take place for the following few weeks, between 405-452 USD.
Google parent Alphabet gained over 10% last Friday, following standout quarterly results that beat revenue and earnings estimates and stoked investor excitement with the announcement of a cash dividend program of $0.20 per share.
In artificial intelligence, Google has widely been seen as playing catch up to Microsoft, which was among the first in the tech world to reap the cultural excitement around consumer AI chatbots.
Google daily chart
Following the massive gap up for Google last week, according to my experience, usually the share price will consolidate for a few days before engaging into another rally. A red candle during the gap signified a certain number of investors were locking profit at high price last week. For me, I think $Alphabet(GOOGL)$
Intel
INTEL, the biggest maker of personal computer processors, tumbled in late trading after giving a lacklustre forecast for the current period, indicating that it's still struggling to return to the top tier of the chip industry.
Intel daily chart
For Intel, I remain my $Intel(INTC)$
Amazon
Amazon reports first-quarter results after the bell Tuesday, with analysts expecting jumps in net sales and profit. Investors and analysts will be watching for updates on the rollout of ads on Prime Video, as well as insights into Amazon's AI plans.
Amazon daily chart
Now, let's look at Amazon chart. Last Friday, the share price stood back above its EMA50 trendline after broke below it for one day. This signified some buyer strength and good support above this level. With the good results from Google and Microsoft, I strongly believe Amazon will post a great earnings as well, pushing the stock further higher next week $Amazon.com(AMZN)$
Apple
Let's end with Apple! Similar to Tesla, Apple had a bad share price performance since beginning of 2024. An obvious downtrend was formed and currently the share rebounded at its neckline support at 165 USD. I believe Apple might duplicate the similar trend like Tesla, rebound strongly after its earnings next week, $Apple(AAPL)$
Apple daily chart
Recently, Apple has renewed discussions with OpenAI about using the startup's technology to power some new features coming to the iPhone later this year. The two companies have begun discussing terms of a possible agreement and how the OpenAI features would be integrated into Apple's iOS 18.
How about you?
Do you invest in big cap companies like those mentioned above? Or you prefer in medium to small cap companies? Welcome leave your comments below!
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Based on the information provided, here is a simple technical review of the mentioned tech giants:
Meta Platforms, Inc. (META):
The company disappointed investors with its forecasts of higher spending and lower-than-expected revenue.
The stock gapped down over 10% after its earnings, indicating short-term bearish movement.
A consolidation phase might take place between the range of $405 to $452 USD.
Short-term selling pressure is expected as investors adjust their positions following the new forecast.
Google (Alphabet):
Google parent Alphabet gained over 10% after reporting good results.
The positive results from Google and Microsoft suggest that Amazon may also post strong earnings, potentially pushing its stock higher next week.
Apple (AAPL):
Apple has been experiencing a downtrend since the beginning of 2024.
The stock rebounded at its neckline support at $165 USD.
There is a possibility that Apple might rebound strongly after its earnings next week.
Recent discussions with OpenAI about integrating their technology into Apple's iOS 18 could be a positive catalyst.
As for investing in big cap companies versus medium to small cap companies, it depends on individual investment strategies and risk tolerance. Big cap companies like Meta, Google, Microsoft, Amazon, and Apple are generally more stable and have a larger market presence. Medium to small cap companies may offer higher growth potential but also come with higher risks. It is important to conduct thorough research and analysis before making any investment decisions.
Please note that this analysis is based on technical factors and does not take into account fundamental analysis or other market factors. Investing in stocks involves risks, and it is recommended to consult with a financial advisor or do further research before making any investment decisions.
Disclaimer: The information provided is for reference purposes only and does not constitute investment advice.