Narrow Rally: Top 6 Tech Companies Drive Tech Sector's Historic Half-Year Performance, Analyst Says
Portfolio Pulse from Anusuya Lahiri
The technology sector has seen its most robust half-year performance in over 20 years, with a 38% appreciation year-to-date, outperforming the broader market by 2350 basis points on a cap-weighted basis. This outperformance has been driven by multiple expansions, with over 100% of the returns coming from increased valuations rather than earnings growth. The six largest tech companies (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms) have accounted for 100% of tech's relative return. Despite negative earnings per share (EPS) revisions for most of these companies, their stocks have performed strongly.
July 10, 2023 | 7:19 pm
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POSITIVE IMPACT
Apple's stock has contributed to the tech sector's strong performance despite negative EPS revisions.
Apple is one of the six largest tech companies that have driven the tech sector's outperformance. Despite negative EPS revisions, its stock has performed strongly, indicating investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Amazon's stock has contributed to the tech sector's strong performance despite negative EPS revisions.
Amazon is one of the six largest tech companies that have driven the tech sector's outperformance. Despite negative EPS revisions, its stock has performed strongly, indicating investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Alphabet's stock has contributed to the tech sector's strong performance despite negative EPS revisions.
Alphabet is one of the six largest tech companies that have driven the tech sector's outperformance. Despite negative EPS revisions, its stock has performed strongly, indicating investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Meta Platforms' stock has contributed to the tech sector's strong performance despite negative EPS revisions.
Meta Platforms is one of the six largest tech companies that have driven the tech sector's outperformance. Despite negative EPS revisions, its stock has performed strongly, indicating investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Microsoft's stock has contributed to the tech sector's strong performance despite negative EPS revisions.
Microsoft is one of the six largest tech companies that have driven the tech sector's outperformance. Despite negative EPS revisions, its stock has performed strongly, indicating investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Nvidia's stock has contributed to the tech sector's strong performance despite negative EPS revisions.
Nvidia is one of the six largest tech companies that have driven the tech sector's outperformance. Despite negative EPS revisions, its stock has performed strongly, indicating investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100