Mid-Week Wrap: 07th February 2024
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Market Mood
This week, mega-cap tech stocks, including Apple, Amazon, and Meta, garnered significant attention as they reported their latest quarterly profits. Meta saw an impressive 20% surge following their results, surprising investors with raised profit guidance for Q1-24, their inaugural dividend declaration, and a $50 billion share buyback plan, exceeding expectations by $1 billion. Amazon's stock jumped nearly 8% post-results, despite Q1-24 revenue guidance slightly below forecasts at $140 billion, as AWS revenue grew by a robust 13% year-over-year. Apple's performance was relatively subdued, with revenues aligning with or slightly below expectations, and with limited specifics revealed on AI initiatives. Looking ahead, Nvidia is anticipated to report on February 21st, with Goldman Sachs raising its price target to $800 this week, marking a 20% increase over current levels. Mega-cap tech stocks represent a distinct asset class, characterized by quality attributes that offer insulation from rising interest rates, diverging from the broader trends seen in the mainstream U.S. economy.