“Black Friday” is generally regarded as one of the largest U.S. shopping days of the year…
It’s also the start of the Christmas holiday season shopping period.
This is a closely watched event given ~70% of all US GDP is a function of what consumer’s spend.
What’s more – it gives us insights into how and where consumers are shopping (e.g., online versus physical; specific categories etc).
News of effective vaccine’s from Moderna and Pfizer are bolstering hopes of a rapid (2021) economic recovery. As a result, growth stocks (like tech) are being sold and value (recovery names) are being bought.
Today it was “big tech on deck”. AMZN, AAPL, FB and GOOG all reported. I think there was a lot to like… and some things which deserve a closer look.
This post focuses on three names – AAPL, AMZN and MSFT – as I think their direction will shape the near-term direction of the market
Technology firms were under pressure again today – as traders continue to take profit. Here’s the thing – I think there’s more to come.
This was my thinking at the start of last week… something was awry.
Today Facebook and Amazon each slid more than 4% and Alphabet (i.e. Google) dropped 3.6%.
Expectations were very high for tech stock earnings – with prices at record highs and multiples stretched.
And some (like Goldman Sachs) were warning investors – to be prepared for disappointment.
Well, the T;DR is these companies blew away analysts expectations.
Netflix has been a stay-at-home darling… until this week. The stock fell almost 7% on weaker subscriber numbers. Will this set the tone for other tech earnings – where the bar is high
Alibaba (BABA) has not enjoyed the same price gains as its tech peers. However, I think the stock represents value.
Today’s Top 5 stocks (Apple, Microsoft, Amazon, Google and Facebook) boast a market cap of $6.3 Trillion – which is ~23% of all the S&P 500
If you’re to look ‘under the market’s hood’ – it’s not difficult to see what is keeping the broader market engine running… mega-tech. Google, Microsoft, Apple, Amazon and Facebook are carrying the market… as the broader market drags.
It’s troubling to learn that ~30M+ Americans have lost their jobs in just six weeks. But what if that number were to spiral to exceed 40M over the subsequent two months? My thinking is if at least 30% of these jobs don’t come back within 2 months – we could be looking at very slow and painful recession…
