The American tech giants have been putting up some
significant numbers as of late which makes it really hard to ignore them. Evidently,
tech has outperformed the overall market. The S&P 500 rally is nearly at an
all-time high due to some big tech companies.
Four out of the Big Five appeared in front of the US
Congress to discuss their anti-competitive business practices and privacy
concerns. These tech companies included Microsoft, Apple, Amazon and
Facebook. Big Tech is not similar to the
traditional business and operates much faster, cheaper, and more profitably
within the realm of the business world.
Despite many companies not performing well due to the
COVID-19 pandemic, the S&P 500 still posted good numbers and eventually
generated a positive YTD return. This was made possible by the weightage of
these companies according to market capitalization. The Big Five represents 25%
of the index despite being just five in number out of 505 stocks, their
weightage is enormous.
The Big Tech has also proven to be somewhat immune from the
COVID-19 as this business did not even faze from the economic downfall caused
by the pandemic. Their business is still being run as per usual and putting up
good numbers compared to the other companies affected by it.
Infographic by: visualcapitalist.com
