High-riding US tech companies still offer value
Top stocks have delivered 35% in the year to date, compared with a 5% increase in S&P 500 index
The investment story of the year is undoubtedly how significantly the big five US tech companies have outperformed the rest of the market. But the trillion-dollar question is: do these businesses still offer value?
It has undoubtedly been a year of two completely different markets. The big five US tech stocks have delivered 35% year to date, compared with the 5% increase in the S&P 500 index. Amazon is up 63%, Apple 43%, Facebook 25%, Microsoft 27% and Google’s parent company, Alphabet, 10%. Together, these companies are now worth nearly $7-trillion and represent more than 20% of the value of the S&P 500 index. While they do not dominate the US index to the same extent as Naspers does the JSE, the market cap of these five stocks is about seven times the value of the entire JSE...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.