Amazon: Silicon Valley bank collapse: How Google, Microsoft and Amazon see ‘best week’ in years
The US banking sector had a miserable week – sparked by the collapse of Silicon Valley Bank and Signature Bank. However, the pain in the banking sector seems to have turned out to be a boon for America’s biggest technology companies, which saw one of their best weeks in years as investors flocked to established names. The KBW Bank Index, which tracks the 22 largest US lenders, sank nearly 15% during the week.
here are the numbers
* The four largest US technology and Internet companies added more than $560 billion in market value in the week.
* To be the biggest beneficiary Microsoft Corporation, the company’s stock rose more than 12%, its biggest weekly jump since April 2015, and it closed at its highest level since August. The week’s jump brought the stock’s market capitalization back above the $2 trillion mark.
* google guardian alphabet inc also rose 12%, its strongest weekly gain since 2021.
* E-tail Giant Amazon also jumped 9.1%.
* Apple saw a relatively small jump of 4.4%, but even then the company’s stock was largely resilient to upheaval.
How big tech seems like a safe haven
Investors seem to be turning to Big Tech and their cash-rich balance sheets amid contagion concerns in the financial sector. In contrast to the uncertainty in the banking sector, leading technology and internet stocks provide investors with more stability in the current market. The sustainable revenue streams and market dominance of these companies make them safe bets and relatively insulated from any economic downturn. Sam Stovall, chief investment strategist at CFRA, told Bloomberg, “Tech is a much more safe haven than your traditional cyclical sectors, and it’s already gone through a re-pricing, which means it’s less likely to lag behind the market.” Looks flashier than the rest.” ,
“While this sounds like a Twilight Zone comment to many investors; Tech stocks have become the new security trade, with Big Tech names being a major beneficiary of this dynamic,” Wedbush analyst Dan Ives said in a note. The note further added, “Large-cap technology and sub-sectors such as cloud and cyber security are seeing much more resilient growth than the Street anticipates. While there are budget pressures across the board, enterprises have a green future in 2023.” There are lit projects and deployments. Many budgets are now in place. The numbers for 2023 have been pulled out by management teams and these tech stocks are owned and still remain in that camp in our opinion.
more to come
Ives also said in the note that he expects tech stocks to rise 20% or more in 2023 “and still have a nice upside break this year.”
here are the numbers
* The four largest US technology and Internet companies added more than $560 billion in market value in the week.
* To be the biggest beneficiary Microsoft Corporation, the company’s stock rose more than 12%, its biggest weekly jump since April 2015, and it closed at its highest level since August. The week’s jump brought the stock’s market capitalization back above the $2 trillion mark.
* google guardian alphabet inc also rose 12%, its strongest weekly gain since 2021.
* E-tail Giant Amazon also jumped 9.1%.
* Apple saw a relatively small jump of 4.4%, but even then the company’s stock was largely resilient to upheaval.
How big tech seems like a safe haven
Investors seem to be turning to Big Tech and their cash-rich balance sheets amid contagion concerns in the financial sector. In contrast to the uncertainty in the banking sector, leading technology and internet stocks provide investors with more stability in the current market. The sustainable revenue streams and market dominance of these companies make them safe bets and relatively insulated from any economic downturn. Sam Stovall, chief investment strategist at CFRA, told Bloomberg, “Tech is a much more safe haven than your traditional cyclical sectors, and it’s already gone through a re-pricing, which means it’s less likely to lag behind the market.” Looks flashier than the rest.” ,
“While this sounds like a Twilight Zone comment to many investors; Tech stocks have become the new security trade, with Big Tech names being a major beneficiary of this dynamic,” Wedbush analyst Dan Ives said in a note. The note further added, “Large-cap technology and sub-sectors such as cloud and cyber security are seeing much more resilient growth than the Street anticipates. While there are budget pressures across the board, enterprises have a green future in 2023.” There are lit projects and deployments. Many budgets are now in place. The numbers for 2023 have been pulled out by management teams and these tech stocks are owned and still remain in that camp in our opinion.
more to come
Ives also said in the note that he expects tech stocks to rise 20% or more in 2023 “and still have a nice upside break this year.”
