Why Is the Large-Cap Tech Sector Recording Gains?
Technology large-cap stocks had a large gain on Friday
Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and Apple (AAPL) are some of the top holdings in the large-cap technology sector (QQQ). These stock have shown sudden increases in the last few days, mainly due to these companies' better-than-expected earnings.
On Friday, Amazon stock rose 6%, Alphabet rose 8%, Microsoft rose 10%, and Apple rose 3%, as the chart below shows. Amazon surprised investors with its second straight net profit and a healthy 23% revenue growth. Alphabet's stock rose because of the strong gains it made in the mobile search space. The company also surprised its investors by announcing spending of around $ 5.1 billion in share buybacks over an undisclosed period. This move has never occurred in Google's 11-year history as a publicly traded company.
Apple's stock rose on expectations of another robust earnings quarter
Microsoft's stock made interesting moves on Friday. Its stock crossed the 15-year-old barrier of $ 51 to close at $ 52.87 on the back of better-than-expected revenues and earnings per share.
Apple will announce its fiscal 4Q15 earnings on October 27. Analysts expect another robust quarter for Apple, as users have received new iPhones the iPhone 6S and iPhone 6S very well. Please note that the iPhone accounted for 63% of Apple's revenues in the quarter that ended in June, so the company depends a lot on iPhones for its growth. A number of other promising businesses for Apple--such as Apple Pay, Apple Watch, Apple TV, and the iPad Pro--could also help drive growth in the near future.
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Part 2 – Cloud Plays Important Role in Driving Large-Cap Tech Sector
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