“This earnings season has highlighted the enduring strength of companies.” big technology sectorallaying investor concerns. A.I. After fueling the market's rally in 2023, its enthusiasm will wane.
'Magnificent SevenA group of tech giants including Nvidia Corp., Meta Platforms Inc., Microsoft Corp., and Amazon.com Inc. posted an impressive 55% year-over-year increase in average earnings per share in the fourth quarter, Bloomberg reported. This solid performance made a major contribution. The Nasdaq 100 index hit a new all-time high, marking its fourth straight month of gains.
Ken Mahoney, president and CEO of Mahoney Asset Management, emphasized the growing awareness of the importance of AI and believes it will be at the center of the conversation in the coming years, Bloomberg reports. I predict that it will continue to be a hot topic. Advances in technology have made value stocks seem rather mundane by comparison.
Before the season started, Wall Street expected modest earnings per share growth of 1.2% in the fourth quarter of 2023. But as of Friday, nearly 93% of companies had reported, making the actual growth rate a staggering 7.7%, according to Bloomberg data.
High-tech sector remains popular
Investors in the tech sector reportedly still view the largest companies as both safe havens and growth assets. These companies have strong balance sheets and cash flows that allow them to weather macroeconomic uncertainties and rising interest rates. In particular, Meta's recently announced $50 billion share buyback and initial dividend caused quite a stir.
Ken Mahoney aptly described it as a “mic dropped” moment. It would be nothing short of amazing if a company could buy back $50 billion worth of its own stock. ”
Additionally, the AI advantages demonstrated by companies like Nvidia are further increasing investor confidence. NVIDIA's outstanding earnings report last week not only boosted the overall market, but also highlighted how the company's earnings growth outpaced its stock price, resulting in the largest single-session market value increase ever on Thursday. brought about a rise. ”
'Magnificent SevenA group of tech giants including Nvidia Corp., Meta Platforms Inc., Microsoft Corp., and Amazon.com Inc. posted an impressive 55% year-over-year increase in average earnings per share in the fourth quarter, Bloomberg reported. This solid performance made a major contribution. The Nasdaq 100 index hit a new all-time high, marking its fourth straight month of gains.
Ken Mahoney, president and CEO of Mahoney Asset Management, emphasized the growing awareness of the importance of AI and believes it will be at the center of the conversation in the coming years, Bloomberg reports. I predict that it will continue to be a hot topic. Advances in technology have made value stocks seem rather mundane by comparison.
Before the season started, Wall Street expected modest earnings per share growth of 1.2% in the fourth quarter of 2023. But as of Friday, nearly 93% of companies had reported, making the actual growth rate a staggering 7.7%, according to Bloomberg data.
High-tech sector remains popular
Investors in the tech sector reportedly still view the largest companies as both safe havens and growth assets. These companies have strong balance sheets and cash flows that allow them to weather macroeconomic uncertainties and rising interest rates. In particular, Meta's recently announced $50 billion share buyback and initial dividend caused quite a stir.
Ken Mahoney aptly described it as a “mic dropped” moment. It would be nothing short of amazing if a company could buy back $50 billion worth of its own stock. ”
Additionally, the AI advantages demonstrated by companies like Nvidia are further increasing investor confidence. NVIDIA's outstanding earnings report last week not only boosted the overall market, but also highlighted how the company's earnings growth outpaced its stock price, resulting in the largest single-session market value increase ever on Thursday. brought about a rise. ”
