We know what you are thinking about: who will risk buying shares in the technology sector when they have such high prices. Do not worry. This question does not give rest not only to you, it is a significant problem for most market participants around the world. Let’s try to deal with it.
The season of corporate reporting for the third quarter has already begun and the financial sector (as usual) was first. Surprisingly, he showed better results than expected, having pleased investors and pushing the best Wall Street stocks to new record heights.
Analysts warned of a possible downward correction of large promotional indices after the results of reporting for the third quarter, because it is she who usually turns out to be the most negative for the whole year.
Market players are very closely monitoring the technology sector – the key driver of this year’s rally in shares and one of the leading sectors of the economy.
In 12 months, the high tech Nasdaq index has grown by a staggering 24%. For comparison, the S & P 500 grew by 19% over the same period.
FAANG shares (Facebook, Apple, Amazon, Netflix and Google’s parent company Alphabet) are expected to show good results and thus target prices have not been changed.
Useful equipment for investors – to monitor the flow of funds in order to understand how people are preparing for the upcoming earnings reports.
Cash flows can be divided into 3 categories: thoughtful (professional investors), impulse (retail investors) and “short squeeze” (a quick jump in prices that pushes “short” investors from their positions, adding strength to growth). < / p>
According to market research companies, current data shows that professional investors are neutral about Facebook, Apple, Amazon and Google, but about Netflix – negatively.
Retail investors, who are easier to cheer with numbers, have a very positive attitude towards Facebook and Apple, an incredibly positive attitude towards Amazon and Netflix and a positive attitude towards Goolge.
Those using “short compression” are neutral to Google, very positive to Netflix and moderately positive to Amazon, Apple and Facebook.
Current conditions show that impulse investors raise stock prices, while professional investors choose a moderate position. The “FAANG” upward movement is likely to continue if Trump’s reform is applied.