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:
Post a Comment