Tech is the "last hurray"? If hedge funds are any indication, it could be a big week for Apple, Amazon and other mega-cap favorites

“There is some short-term optimism, almost like a last hurray… before the rate hike and concerns around Big Tech with a Democratic government slows it down. ”

This is Gene Goldman, Director of Investments at Cetera Financial Group, talk to Bloomberg News about a surge in technology purchases by hedge funds ahead of the high-level earnings of Apple AAPL, + 1.61% and Amazon AMZN, -0.45% in the coming days.

According to Goldman Sachs Group prime brokerage, hedge funds have increased their net exposure to tech industry megacaps at one of the fastest rates in recent years. It came from a stretch where “smart money” was unloading some of the most important names.

After resisting the pandemic, Facebook
FB, + 0.60%, Apple, Amazon, Microsoft MSFT, + 0.44% and Alphabet GOOG, + 0.52%

GOOGL, + 0.45%, are all expected to post faster earnings growth than the rest of the market for a 12th straight quarter, according to Bloomberg estimates.

If Netflix’s NFLX, -2.53% from last week’s results is any indication, such a “last hurray” could pay off for those who load up on tech stocks. Netflix jumped 17% on its good numbers.

Read: The ‘biggest red flag’ in this bull market just disappeared, trader says

Megacap tech aside, it’s a huge week for profits overall, with nearly a quarter of the S&P 500 ready to report results. Together, the reporting companies represent 39% of the index at market value. Since the S&P 500 is market cap weighted, this list of companies will have a disproportionate impact on the index’s profit trajectory.

It’s also a busy stretch for the Dow Jones Industrial Average DJIA, -0.57%, with 13 blue-chip index members preparing to release their quarterly results, including 3M MMM, -0.96%, Johnson & Johnson JNJ, + 1.13% and American Express AXP, -1.01%.

Via: www.marketwatch.com

News Highlights

According to the source Tech is the “last hurray”? If hedge funds are any indication, it could be a big week for Apple, Amazon and other mega-cap favorites
Check all news and articles from the tech news updates.

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more