Left Menu
Development News Edition

Big Tech stocks surge ahead of earnings tsunami

Apple, Facebook, Amazon and Alphabet rallied on Thursday ahead of earnings reports from the group of technology heavyweights that has helped keep Wall Street in positive territory this year, despite the coronavirus pandemic. Microsoft, Wall Street's third most valuable company, jumped 2% after the software maker late on Wednesday reported better-than-expected results, helped by a pandemic-driven shift to working from home and online learning.

Reuters | Updated: 30-10-2020 09:44 IST | Created: 30-10-2020 00:17 IST
Big Tech stocks surge ahead of earnings tsunami
Representative image Image Credit: ANI

Apple, Facebook, Amazon and Alphabet rallied on Thursday ahead of earnings reports from the group of technology heavyweights that has helped keep Wall Street in positive territory this year, despite the coronavirus pandemic. Facebook jumped over 5%, with Apple and Google-parent Alphabet each up nearly 5%, and Amazon adding nearly 3%. Those companies' gains ahead of their quarterly results after the bell added a combined $230 billion to their market capitalizations, more than the entire value of Walt Disney.

Twitter, also reporting after the bell, surged 8%. Heavyweight U.S. technology companies, also including Zoom Video Communications, Nvidia and Microsoft , have grown their businesses and outperformed smaller rivals this year as the pandemic accelerates trends toward online shopping, video streaming and other technologies.

Rallies in shares of these top-shelf tech companies have led the S&P 500 to record highs, even as the index's smaller components struggle with a crippled global economy. Without Facebook, Apple, Amazon, Netflix and Alphabet - the so-called FAANG stocks - the S&P 500 would be down about 4% in 2020, compared with the index's 2% year-to-date rise, according to a research note from Bespoke Investment Group on Thursday.

"Due to both the huge weight of these stocks and their outperformance, the market has become more reliant on them than ever before for its gains," according to Bespoke. This week's quarterly reports come amid turbulence on Wall Street, with soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimming the outlook for an economic recovery and knocking over 5% off the S&P 500 between Monday and Wednesday. Rallying tech stocks on Thursday pushed the S&P 500 up 2%.

Recent options trades imply investors expect a 6.3% swing in Facebook's shares in either direction by Friday, according Trade Alert. Over the last eight quarters, on average, the shares moved 5.5% on the day after Facebook reported. As well as benefiting from ad spending ahead of the Nov. 3 presidential election, Facebook's report could show a negative impact from several companies pulling advertising in recent months in support of a campaign calling out the social media giant for not doing enough to stop hate speech on its platforms. Analysts on average expect Facebook to report revenue up 12% to $19.82 billion, according to Refinitiv.

"If I look at all the large-cap tech companies, I'm mostly worried about Facebook, going into the print, because of all of those ad boycotts," said Brad Gastwirth, chief technology strategist at Wedbush Securities. Microsoft, Wall Street's third most valuable company, jumped 2% after the software maker late on Wednesday reported better-than-expected results, helped by a pandemic-driven shift to working from home and online learning.


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

S.Korea braces for bed shortages as coronavirus cases near nine-month high

South Korea reported more than 500 new coronavirus cases for the second consecutive day on Friday, a level not seen in nearly nine months, as a third wave of infections spreads nationwide and authorities scrambled to provide more hospital b...

Once Australia's COVID-19 hotspot, Victoria goes 28 days without an infection

Australias second-largest state, Victoria, once the countrys COVID-19 hotspot, said on Friday it has gone 28 days without detecting any new infections, a benchmark widely cited as eliminating the virus from the community. The state also has...

Will leave White House if Electoral College declares Biden winner: Trump

US President Donald Trump has said he would leave the White House if the Electoral College declares Joe Biden the winner of the November 3 elections, even as he reiterated unsubstantiated claims about widespread voter fraud. In his Thanksgi...

Weekend scorcher: Australia braces for first major heat wave of fire season

Australia is bracing for the first major heat wave of the bush fire season this weekend with temperatures forecast to hit well above 40 degrees Celsius 104 degrees Fahrenheit, prompting authorities to urge people to stay indoors.Last summer...

Give Feedback