If you read this blog, you know that I’ve been waiting for the major tech companies that I cover to announce their March quarter earnings. For the “FAANGs,” which includes Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (GOOGL), and to which I’d add Microsoft (MSFT) to this group of tech titans, that news firehose blasted us last week. Of course, none of these companies gave a rosy forecast, mainly since the next period ended June 30 will be the first full quarter reflecting the COVID business lockdown. Check out Tech Investor Paul Meeks On American Business 2.0 & Re-Opening The Economy for more commentary on these tech companies
Nonetheless, I was pleasantly surprised by their results, both reported and forecasted. I owned all these stocks going into the quarter but one, FB. Now I’m back in that one too. I’m convinced that tech will continue to be a monster sector for investors as COVID has forced an even more rapid and complete transition from analog to digital businesses. And, as always is the case in tech, the strong get stronger, which bodes well for the shares of these major firms.
I still think that the market is ahead of itself because the consensus view of a fast and total return to normalcy after U.S. businesses reopen is wrong. Some economists believe that the earnings on the S&P 500 will be higher in 2021 than they even were in 2019, which was 11 years into uninterrupted economic growth and the culmination of one of the greatest bull markets of all time. Really? Can that really be expected as we roll out of this COVID economic fiasco with all the questions that remain concerning the virus and its economic impacts with many likely permanent? Okay, I’m not as bullish on the market as the next guy, so I’m more careful investing money. However, I’m incrementally bullish on tech when I do. Exiting this COVID nastiness, I recommend that tech stocks, or the shares of Business 2.0 digital companies, be at least one-third of your portfolio.
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Investment Committee Member Paul Meeks was on CNBC’s Squawk on the Street to discuss his broad take on equity markets and government impact on certain stocks. Watch here!
Paul Meeks was in a Barron’s article regarding Arm’s IPO price and gives his thoughts on the nature of the valuation. Read here for details!
Paul Meeks was featured in a CNBC article explaining why he may buy certain tech stocks after the hype has ran its course. Read the article for details!