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