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Cherry-picking inside the tech pantheon: Which one is the best?

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Moomoo News Global wrote a column · Mar 31, 2022 05:27
Investors are flooding back into renowned tech companies as of late, prompting instant prosperity in the stock market. Technology hasn't lost its glamor, recovering from the original shock caused by high inflation and supply chain issues. It appears that Wall Street feels pretty confident about tech companies' future growth, with major companies releasing unrelenting revenue prospects.
The financial statistics of the 7 most recognized tech companies are listed in the chart below, showing excellent profitability in the latest quarter except Meta Platforms, which transformed into a metaverse company.
Cherry-picking inside the tech pantheon: Which one is the best?
Laggards and leaders
Which tech giant should we look out for? We rank these companies by the year-to-date change, finding that Meta Platform is still lagging well behind other comparable tech giants. Since profitability on metaverse is still gloomy in the near future, the recent rebound is more likely to be a restoration of the previous selloff happening in late January.
Source: Yahoo finance
Source: Yahoo finance
If we take this outlier out of the mix, what does the comparison among the other 6 mega-cap techs look like?
Tesla is leading the group by inching about 3.5% up year to date, yet Microsoft, despite bouncing back nearly 10% following the recovery of the market, still drops more than 7% below the breakeven line. The other four companies perform similarly without serious losses.
Source: Yahoo finance
Source: Yahoo finance
Tesla is believed to be the favorite after it announced the start of a Gigafactory in Germany and a potential stock split plan. Share price soars up to a great extent, beating other competitors as it dominates the EV market when consumers show a stronger propensity to replace gasoline cars considering the high inflation of oil prices.
Amazon lags Tesla just a little while getting a boost from a stock split plan and a stock buyback program. Apple, which is facing supply chain issues and reports a cutback on the production of iPhone SE, weather the storm well to notch 11 consecutive gains. Analysts are faithful that the demand for iPhones will not waver despite the reduction.
Google stocks are also edging higher when it proposes to split shares, and Nvidia keeps advancing with the rollout of new high-tech products and the ongoing achievements in artificial intelligence.
Microsoft ended March on a modest note, facing some headwinds to its rebound. While revenue prospect is perceived to be rosy, its PE ratio, which reads at 33, floats above the levels of most peers. Besides, after its ambitious acquisitions of Nuance Communications Inc. and Activision Blizzard, some investors may worry about the company's cash reserves, which are vital to its future growth.
Forecasts are glowing
The tech industry still acts like a cash cow and is showing continuous development, which is why the famous fund manager Cathie wood put most of her wagers on it. The top 7 tech giants have few fundamental blemishes, all serving as outstanding investment targets. Their revenue forecasts all indicate strong buy signals. Yet there's little doubt that the outlook for Tesla is the brightest.
Disclaimer: Investing involves risk and the potential to lose principal. Past performance does not guarantee future results. This is for information and illustrative purposes only. It should not be relied on as advice or recommendation.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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