Press "Enter" to skip to content

Tech Shares Are Here Again…This Time With A Bang

Tech stocks tumbled in 2018’s fourth quarter because of concerns of trade tension with China, global economic slowdown, and over worries that the Federal Reserve may increase the interest rates many times. Nor did Facebook’s privacy problems help matters neither did the earnings warning from Apple help. However, this year the techs have come back to life, helping the market reach higher. In 2019, the Nasdaq has gone higher up to 15%. On Friday, the market again went into a tailspin as fears over the inverted yield curve and weak economic data from Germany.

This year the shares of Facebook have risen more than 25% despite of worries over user privacy. Apple has gone up 21% and the investors have forgotten about the slumping sales of iPhone. Amazon has gone up18%, Google owner Alphabet has risen 16% and Netflix has gone up 35%, despite competition from Amazon, Apple, Disney and Warner Media.

The portfolio manager of Miracle Mile Advisors, Brian Sterz, said that in short-term the valuations for the tech stocks will be a little frothy. So it might be time to take a short break. He added that the tech leaders who have been the big players in clouds infrastructure would continue to do well. He noted that even if market slumps again, many tech biggies could sustain as they have huge amounts of cash and little debt which would save them from the mood swings of the market in future.

Other tech kings are rising like the older tech companies that are transforming themselves to reap the benefits of the rising demands of the cyber security and the cloud computing services. This year CSCO and IBM who are buying cloud and open source software company RHT are up 22% and 23%. They have become the top stocks along with Apple. Microsoft has gone up 15% and Oracle is up 17%.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *