Reflecting on the Nasdaq Composite’s recent 2.7 per cent rise, the S&P’s slight climb of 0.74 per cent and the Dow Jones’ lacklustre performance, eToro analyst Josh Gilbert has attributed tech stocks to keeping “shaky markets afloat”.
He highlighted four tech giants as doing particularly well right now, and here’s why:
- Apple
Fresh off the revelation that Apple is the first company to hit a $2 trillion market cap, the computing giant gained 5.1 per cent last Friday alone, Mr Gilbert said.
It puts the share price up 65.6 per cent this year to date, with a recent earnings report showing that the business has rebounded after struggling early pandemic.
- Alibaba
The e-commerce giant also announced better-than-expected earnings last week, reporting $21 billion in revenue for the year – a 34 per cent year-on-year improvement.
According to Mr Gilbert, “a standout for Alibaba was its growth in the cloud sector, with 59 per cent year-on-year growth, generating over $1.7 billion in revenue”.
After the announcement, share prices pushed up 3 per cent, taking the company’s gain to more than 60 per cent in a 12-month period.
- Nvidia Corp
The tech company reached a new record close of $507 last Friday after reporting record data centre revenue – up 167 per cent compared with the same time last year.
Mr Gilbert outlined that the overall reported revenue for Nvidia was $3.87 billion – a 50 per cent increase from 2019’s $2.58 billion.
“Nvidia shares gained 7 per cent last week, moving its year-to-date number above 111 per cent,” the analyst offered.
- Tesla
A mainstay in the press, Tesla also reached a new record high last week.
It gained more than 11 per cent after Wedbush’s Daniel Ives increased his 12-month price target on the stock from $1,800 to $1,900, citing accelerating demand for electric vehicles in China, according to eToro.
“He might need to rethink those valuations as Tesla went on to breach $2,000, closing at $2,049 on Friday,” Mr Gilbert commented.
Overall, Tesla stock saw almost 25 per cent increases to stock prices last week alone, with the stock up more than 376 per cent this year to date.
