Big Moves from Meta and Microsoft
It was a big day for the Marcus Today Strategy Portfolio today because we had results from Meta and Microsoft, and they could not have been better.
It was a bit of a risk, really. Meta and Microsoft, along with Apple and Amazon (which report tomorrow), could have had poor results and upset the formula. That formula currently involves investing in the S&P 500, the Nasdaq, and FANG, which is a Big Tech ETF.
We’ve got most of the Strategy Portfolio in those three. And the good news overnight is this: Microsoft is up, I think, 7.8% after hours on results, and Meta is up over 11%.
They’re the big drivers of Big Tech sentiment, and that’s the key word: sentiment. Because they’re trading on an average P/E of around 38 times, which makes them expensive. They lack solid fundamental support.
So sentiment is everything. And these results were going to tip sentiment one way or the other. Thank goodness, so far, they’re good.
The underlying theme in both results is that they’re spending more on AI – CapEx, infrastructure, and data centres – than the market expected. And that is the key to Big Tech sentiment.
If we can get through the Apple and Amazon results tonight – we had Google last week, and they were up 4% on results – then by Saturday morning, we should have got through the major part of the Big Tech results.
That’ll give us another three months of riding positive Big Tech sentiment. And right now, that seems to be sweeping aside all the other market issues.
The Strategy Portfolio should continue to benefit, being out of Australia and fully exposed to a Big Tech bull market.
Let’s see what Apple and Amazon do tonight.
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