This is the first time in years when Apple, Amazon, Alphabet, and Facebook would be displaying their financial results on the same day. And everyone in Wall Street is hoping that they deliver to an extent that would be enough to help Wall Street recover- a process working through March.
The ‘stay at home’ has really been quite a win for all these major tech companies as their shares have reached record margins, considering the benchmark S & P is less than 1% this year. There have been debates about this-naturally. With several of Amazon’s stores closed, and Facebook’s e-commerce sections taking major hits, many in Wall Street are of the opinion that details might have been inflated beyond control.
Microsoft’s shares fell after experiencing an all-time high back in early July. Their shares fell 4.4%, even though they have a better than expected cloud revenue.
“When you have stocks looking like they’re moving into a bubble, what you don’t know is how far it will go. You can’t just look at valuation and say ‘it’s going to fall.’ It can go anywhere and the risk is becoming extremely, extremely high,” mentioned Leo Kelly, founder of Verdence Capital Advisors.