90's Tech Titans Are Outshining 'Magnificent Seven' — Analyst Tells Why Market Is Going Gaga Over Them
Portfolio Pulse from Shanthi Rexaline
Sarat Sethi, Managing Partner at Douglas C. Lane & Associates, highlighted on CNBC's Last Call that '90s tech titans' like IBM, Oracle, Dell, and Intel have outperformed the 'Magnificent Seven' stocks in the past 90 days due to their robust cash flow growth. This trend is significant in the current high-interest rate environment, as cash flow is vital for operations and capital investments without relying on high-interest loans. IBM recently reported strong cash flow in its Q4 results, with $13.9 billion in net cash from operating activities. The Technology Select Sector SPDR Fund (XLK) fell slightly in premarket trading.
January 26, 2024 | 12:12 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Dell's inclusion in the group of '90s tech titans with growing cash flow suggests a positive market sentiment that could benefit its stock price in the short term.
Dell's mention alongside other tech giants with strong cash flow growth indicates a favorable market perception, which could positively influence its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
IBM reported strong cash flow in its Q4 results, which is a positive indicator for investors and aligns with the market's focus on cash flow in a high-interest rate environment.
IBM's reported increase in cash flow is a strong positive signal, especially given the current market's emphasis on cash flow due to high-interest rates. This financial strength could lead to a short-term positive impact on IBM's stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Intel's performance, as part of the '90s tech titans with increased cash flow, may attract investor interest and potentially boost its stock price in the short term.
Intel's inclusion in the group of tech companies with significant cash flow growth could lead to increased investor interest and a possible short-term uptick in its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Oracle's involvement in cloud computing and AI, along with its growth in cash flow, positions it favorably in the current market focused on cash flow.
Oracle's mention as a company with growing cash flow and involvement in cloud computing and AI suggests a positive outlook, which could lead to a short-term increase in its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEUTRAL IMPACT
Despite the positive sentiment around tech companies with strong cash flow, the Technology Select Sector SPDR Fund (XLK) experienced a slight premarket drop, indicating mixed short-term impact.
XLK's premarket drop, despite the positive news about tech companies' cash flow, suggests a neutral short-term impact as the ETF includes a broader range of tech stocks beyond those mentioned.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50