Big tech has been the focus of Wall Street for most of 2024, but can it continue to perform as well as it has year to date?
Mahoney Asset Management President Ken Mahoney joins Wealth! to give insight into the tech sector and which of the Mag 7 need to be in focus for investors.
“I always think well the big three now we have Apple (AAPL) crossing $3.5 trillion valuation just a couple of days ago. First company to do that Microsoft (MSFT), Nvidia now number three. So I guess I look at the weighted averages, the weighted indexes, and that’s by the way when people kind of talk about small cap and international, no, we’re still here because there’s so much liquidity in those names because of, you know, payroll tax and because of money coming out of 401(k) plans, 403(B) plans and a lot of money then finds its way to the weighted ones. So to your point, I think it has to be Microsoft, Apple, Nvidia has to have good numbers to kind of keep this thing going .” says Mahoney.
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This post was written by Nicholas Jacobino
Video Transcript
Ho how much is this earning season really come back to NVIDIA and, and how well this bell weather continues to impress the street.
So I think it’s all been about earning estimates.
I think this all the time.
How is it now?
Like eight days in a row, nine days in a row, setting records and hair scratcher when they read the headlines, you know, the political cycle, the geopolitical cycle, all the problems they’re seeing as it comes down to earnings and let’s continue to, you know, increase earnings.
And after the first quarter of this year, March 31st, it was clear that earnings had to kind of catch up and you have these analysts kind of falling over each other.
I go from a buy to a strong buy.
I go from neutral to a buy 140 target to 170 targets.
And that’s what been seen last couple of weeks because very soon I just had the big tech earnings coming out tomorrow, the banks.
But really, if you kind of look at it, it’s really earnings estimates.
And by the way, there’s so much noise out there in the headlines at the end of the day.
Stocks are really gonna go and behave well with a good tailwind with earnings and we’re seeing that analysts keep trying to catch up and they seemingly can’t catch up to, to the earnings with technology because of all the capital spending that’s happened.
What are the non nvidia names that could make or break this earnings season?
Look, I always think about the big three now we have Apple Crossing 3.5 trillion valuation.
Uh just a couple of days ago.
First company ever do that Microsoft uh NVIDIA now, number three.
So I guess I look at the weighted averages, you know, the weighted uh indexes.
And that’s by the way when people kind of talk about small cap and you know, international.
No, we’re still here because there’s so much liquidity in those names because of, you know, payroll tax because of, you know, money coming out of 41 K plans, 43 B plans and a lot of money then finds its way to the weighted one.
So, you know, to your point, I think it has to be Microsoft Apple, NVIDIA has to have good numbers to kind of keep this thing going.
Amazon, Google Donner Blitzen comedy, you know, all those kind of big tech names that weigh heavily in the SP 500 are very heavy into NASDAQ.
We need to see those names be able to beat and raise guidance and then start that cycle again.
Of analysts playing catch up.
