This week saw a number of highly-touted technology stocks see massive increases on improved earnings and improved sentiment across the broader technology sector, as investors continue to look for growth amid modest global growth rates in recent years.
The U.S. tech market has been on a tear, breaking through new thresholds seemingly on a daily basis. On Friday, shares of many of the biggest American tech companies shattered all-time highs, for a variety of different reasons.
Shares of e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) skyrocketed more than 13% intraday on improved earnings and revenue growth year over year; n the face of double digit revenue growth rates during the first two quarters, amazon posted a whopping 34% revenue growth rate in the third quarter, driven by growth in the company's e-commerce, web services, and newfound grocery retail segments.
Similarly, iPhone maker Apple Inc. (NASDAQ:APPL) surged more than 3% on news that the company's iPhone X is officially sold out, calming investor concerns that demand for the company's newest set of iPhones may not be as robust as initially expected. With an increased price tag seemingly not a deterrent for consumers, expectations are that increasingly robust profit growth can be expected from Apple moving forward.
Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG) also saw large intraday increases of 7% and 6%, respectively, bolstering investor sentiment for the broader sector as we approach Q4 2017.
With sentiment near all-time highs, momentum investors are likely to continue to pile into the technology sector for the foreseeable future, increasing the likelihood of continued robust growth sector-wide. That said, as valuation multiples continue to grow, concerns about overheating may derail the party at some junction from bears looking to reap the benefit of mean reversion.
Invest wisely, my friends.
Tech Insider
