Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Friday, April 7, 2023

Mega Cap Tech Stocks Against Small And Medium Sized Tech Entreprises



Currently, the tech Top 5, namely Apple, Microsoft, Alphabet, Amazon and Meta are getting (almost) all the spoils from the ongoing technology boom. 

This can be partly explained by the fact that the institutional money or trillions of USD managed by pension funds, endowments, asset managers, hedge funds are looking for a relatively safe way to participate in the ongoing technology boom. 

The mega market capitalization top 5 are profitable and apart from Amazon, exhibit very high net profit margins. All of them, apart from Meta have a market capitalization of more than 1 trillion USD. And Apple and Microsoft distribute dividends even.

However, Wolfteam expects this tech mega cap trend sooner or later to slow down. There can be different triggers - the Federal Reserve raising rates, China - Taiwan tension, rising oil prices, general risk aversion.

The nimbler technology small and medium technology enterprises' stocks prices should be able to bounce off their recent lows much more dynamically and to even several times larger extent than a certain appreciation of the tech Top 5, namely Apple, Microsoft, Alphabet, Amazon and Meta's equity prices.

In my opinion, also as sole proprietor of Wolfteam Ltd., small and medium technology companies' stock prices will outperform Apple, Microsoft, Alphabet, Amazon and Meta's shares by a high margin in the next 7 years.




No comments: