Big Tech Keeps Banking Big Bucks

If you understand how money works, then it’s no surprise that big tech stocks keep moving higher.

With attention to earnings it’s clear that Apple and Facebook might have a problem. To put it another way, they have to figure out what to do with all this money.

Seriously, Apple’s market cap is $2.24 trillion while Canada’s GDP is $1.6 trillion. Facebook is not far behind either. Surely, it’s staggering how much money big tech companies make. And this is the reason why their stocks are a great investment.

Apple Q2 Performance

revenue of $89.6B, up 54% YoY
net income of $23.6B, up $110%
iPhone sales of $47.9B, up 65%
iPad sales of $7.8B, up 77%

In light of this ridiculous growth how can Apple shares not be a core holding in any portfolio?

Surprisingly, the stock is trading lower today! Any weakness in price is a buying opportunity, in my opinion.

Now let’s move on to Facebook and see how their quarterly earnings compare.

Facebook Q1 Performance

revenue of $26.2B, up 48%
net income of $B, up 92%
monthly active users of 2.85B, up 10%
ad revenue of $25.4B, up 46% YoY

To repeat, this is another crazy growth story telling us to buy more Facebook shares. This story does not stop here, lot’s of big tech companies are growing this quickly.

Obviously investors are cheering this earnings report. Stock is up over 5%.

Conclusion

In reality stocks are in the biggest bull market in history for a reason. For one thing, US treasuries offer investors a return less than inflation. So, every moron with a few bucks has figured out which is a better bet, treasuries or stocks.

What’s ironic is Wall Street and Financial TV continue to debate which is a better investment. Now that’s funny!

At any rate, this bull market is far from over. As long as US treasury yields stay low, as the Federal Reserve says they will, stocks are headed higher. Much higher!

Have you heard about MongoDB? It’s one big tech stock that flying under the radar and ready to take flight.

DISCLAIMER: Content provided in this article is for informational and entertainment purposes only. This article is not legal and/or investment advice. This article should not replace professional investment advice based upon your particular situation. Duties are not assumed, intended or created by this communication.