Up 13%- You Can Always Count on Big Tech

Another story of Big Tech driving the broader market. We just saw this story on Tuesday.

On 26th July, 

$Wal-Mart(WMT)$ lowered its guidance and the broader market fell.

After the bell $Microsoft(MSFT)$ and $Alphabet(GOOG)$ released earnings that slightly missed expectations but reassured investors and the $NASDAQ(.IXIC)$ jumped 4%.

Nasdaq jumped 4%

Yesterday, 

2Q GDP data was released at -0.9% YoY, below expectations of +0.5%. Stocks began to fall, with Chinese stocks falling more. As of close, most companies closed slightly higher.

After the bell, $Apple(AAPL)$ and $Amazon.com(AMZN)$ released their earnings, Amazon jumped 13% and its price has surpassed the previous high of $125.

Poster made by Tiger_chat

Why did big tech rise although they missed expectations?

1) Market sentiment has improved since last week's 3-day winning streak.

2) The market has priced in expectations that it may miss, and the valuation has fallen before due to the decline, big tech has no more room to fall.

3) Stable revenue and business.

But small companies still have room to fall:

For example, $Teladoc Health Inc.(TDOC)$ plunged 17%.

1) Under the background of economic headwinds, many companies have not achieved stable profits. Their earnings may disappoint the market

2) Valuation is too high, the share price may fall further

Bottom Line

Data from tradingview

Big tech such as $Tesla Motors(TSLA)$ , $Microsoft(MSFT)$ , $Alphabet(GOOG)$ , $Apple(AAPL)$ all delivered a "not bad earnings" in this earnings season.

In the economic headwinds, we can always count on big tech!

Do you think big tech is your first pick?

Like me and comment here to win tiger coins~

# 💰 Stocks to watch today?(23 Dec)

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  • setia100
    ·2022-07-29
    Irrational exuberant markets as Alan Greenspan said 😂
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    • LMSunshine
      Totally agree!!!
      2022-07-30
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  • SR050321
    ·2022-07-29
    Yes i want but at my target price 🥰
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  • StickyRice
    ·2022-07-29
    Yes but at the right price. It doesn’t mean I will buy only when the price is drop. But when the price is lower than the company value. Must analyze first before buying. But it always on my wishlist
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  • Bonta
    ·2022-07-29
    Buying at right valuation is key. Buying overpriced even if excellent companies doesnt necessarily lead to happy ending…
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  • Big Cat
    ·2022-07-29
    Yes, big tech will be my first pick as I personally like tech companies [Grin].

    Also, big tech will rebounce the most after a bear 🐻 market [Doubt]?
    At least that's what I heard [Grin].

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  • MIe
    ·2022-07-29
    Investors back market as rate hikes and technical recession expected .. time to reap returns 2nd and beyond
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  • RDPD富爸穷爸
    ·2022-07-29
    I would say market leaders with consistent track record of growth and profits are my first pick provided they are at reasonable valuation.
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  • highhand
    ·2022-07-29
    Big tech is the best
    Better than all the rest
    Small tech can be multi-bagger
    But Big tech is always more stable
    Buy low, sell high is the game
    If you buy undervalued, it's all the same 😄
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  • ___ _
    ·2022-07-29
    Some like Big Tech, some like small for swings.  it depends on your trade preference and strategy.  For those who hold long term,  Big Tech is for sure more alluring. 
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  • duseve
    ·2022-07-29
    Big Tech can be quite scary, because in a bear market they also lose the most 😅 So it depends on whether your heart can take their volatility
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  • Kaixiang
    ·2022-07-29
    Yes, selective big techs, such as $Microsoft(MSFT)$ with product/services that are relatively price inelastic or recession-proof. Digitalisation is the future, and tech companies will benefit most
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  • Omega88
    ·2022-07-29
    Yes, I'm buying the big tech only! But I'm buying $Vanguard S&P 500 ETF(VOO)$ $SPDR S&P 500 ETF Trust(SPY)$ which consists of big techs like Apple, Microsoft, Amazon, Alphabet etc
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  • JL28168
    ·2022-07-29
    yes..if recession n market crash, select big tech will be more defensive n recover faster than others...
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  • Boo2020
    ·2022-07-29
    bought a bit of all the big tech, but majority is still in VUSD, coz lazy to monitor [Miser] [Miser]
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  • MHh
    ·2022-07-29
    Big tech has always been my pick. No matter what happens, tech is required, inflation or recession. Problem is, havent fall to my target price to buy[Cry]
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  • 己所不欲
    ·2022-07-30
    Big Tech is more stable and with strong cashflow, it can withstand market pressure better.  Less Risky for long term investors.
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  • koolgal
    ·2022-07-30

    It would seem that there is a current rotation from Value Stocks to Growth Stocks especially Big Tech Stocks like Apple, Amazon and Microsoft.  Big Tech like these 3 stocks are fundamentally very strong.  They are profitable and have very strong balance sheet and free cash flow that can stand the volatility of the markets.

    However I believe that this is not a market bottom but rather a Bear Market rally.  Going forward, a lot depends on signals that inflation won't keep rising, strong economic data and the Feds' action on interest rates.

    Nonetheless I am bullish on  Apple, Microsoft, Amazon as they are resilient in volatile times.  In fact they can be regarded as defensive stocks due to their strong moats and excellent management.   They are on my conviction stock list as my time horizon is at least 10 to 20 years.  It is time in the market that counts, not timing the market.

    @Tiger_chat  @TigerStars  @CaptainTiger  

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    • Sharon17
      Ok
      2022-07-31
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    • kianweiting
      In difficult times, corporate needs to find more cost effective solutions and these giant technology companies often are able to help them and thus their revenue stays relatively resilient.
      2022-07-30
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    • Thomas1027
      [Smile]
      2022-07-30
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  • WH the great
    ·2022-07-30
    Yes for me. though the risk is there but i think it is calculative risk so long it ia great business. .if recession n market crash, select big tech will be more defensive n recover faster than others.
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  • pekss
    ·2022-07-30
    While value stocks form the core of my portfolio for incomes, big tech are essential components in my portfolio to drive capital growth over the long run. These are the twin engines for my investments
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    • pekssReplying tongph
      Thanks!
      2022-07-30
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    • ngph
      Good strategy for income and capital appre ciation!
      2022-07-30
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  • HelenJanet
    ·2022-07-30
    Big tech is definitely my 1st choice due to their strong fundaments. I have bought Amazon after their stock split which is at a more affordable price. Still waiting to buy APPL & MSFT at lower price.
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