Big Tech: down but not out
Big Tech stocks $Apple (AAPL.US)$, $Alphabet-A (GOOGL.US)$, $Amazon (AMZN.US)$, $Meta Platforms (FB.US)$, $Microsoft (MSFT.US)$, $Netflix (NFLX.US)$, $NVIDIA (NVDA.US)$ slid into the red along with broader market weakness on all three major market indexes $Dow Jones Industrial Average (.DJI.US)$, $Nasdaq Composite Index (.IXIC.US)$ , $S&P 500 Index (.SPX.US)$. Most of these companies do not have any significant news of their own to account for the price decline. The slide was due to a number of factors, including market record highs, stretched valuations for stocks and a surging bond market which drives up bond yields. Investors should be prepared for greater price volatility in the near term. While investors may remain confident that strong earnings will support stock prices, more sudden rate swings could drive continued volatility.Those who are concerned with the recent market selldown may be tempted to sell off to reduce exposure to the tech sector. Yet buy the dip strategy may work for high quality companies such as the Big Tech, which are poised for further growth regardless of bond yields or inflation rate. So long as these fundamentally solid companies are able to deliver better financial results, their long term prospects are still intact.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
101767718 : I think Big Tech can still go higher as the bull market is still here
Spearhead : Big tech company have the tendancy to increase further growth irrespective of bond yields or inflation rate.
Jeet Kune Do : Good stuff
HuatLady : I agree with your optimistic views of investing in big tech quality companies such as $Netflix (NFLX.US)$ , $Apple (AAPL.US)$ , $Microsoft (MSFT.US)$ as they have a future in further growth.
Southern Eagle : Tech companies still got a lot of potential, but need to hold for now.
Syuee : I totally agree.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
jasonleett : Absolutely on spot viewpoint... Just look at Zoom stock... On of the Gems in this pandemic
102089245 : Strongly agree, tech stocks should still do well in the long term
garay : Many of the big tech companies have very strong fundamentals and growth potential. I believe that with a long term view, these stocks are very attractive to buy and hold when it dips. Having no significant adverse news is also a good sign that these stocks are probably at a discount now. It could just be poor overall market sentiments now.
HuatEver : Yes, your prediction of future growth in the big tech companies sound exciting![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
. We should take this opportunity of recent market’s dip to invest in quality shares such $Amazon (AMZN.US)$, $Netflix (NFLX.US)$for long term investment goals.
View more comments...