Big tech stocks are doing a little better again. Whether we’re looking at PayPal, Netflix, or any other name, stock prices have soared. The big chaos seems to have been averted. Partly because the quarterly figures did not reveal a complete fiasco.
We can learn a valuable lesson from this. Especially in relation to the big tech stocks, which may still give us some returns in the coming weeks or months. Once again the note: A selective look at the company-oriented opportunities is of course always appropriate.
Big Tech Stocks: The World Is Not Destroyed
Of course, many big tech stocks still have discounts or their operational woes. Less growth is part of it, sometimes even stagnation. Factors such as the Ukraine war, inflation or rising costs mean that some of the results are weaker. This means that we are still further away from top form.
But many quarterly figures are currently showing that the operational world is not broken. In the area of digital payment services, moderate volume growth is at least continuing. Streaming companies have also shown that they can continue to grow. Or at least keep their operational base. This is far from the end of the world.
In some cases, however, some big tech stocks with well-known names such as PayPal or Netflix have fallen very, very low in advance. Foolish investors who bet on the strong names and at the same time believed in the growth stories in the medium to longer term have struck with discount. And you may have already taken a solid return with you.
It is sometimes enough that the world is not being destroyed and that there is still an operational, existing starting point for Big Tech shares. Especially when their valuations have since cheapened, and in some cases to a value level.
Dark clouds can be attractive
For me, the crux of the matter is that it takes a lot for the operative investment thesis to be destroyed, especially with big tech stocks with names like PayPal or Netflix. Neither payment services nor platforms nor intact ecosystems are disappearing anytime soon. The markets are intact, even if they get isolated dents. The fact that shares have fallen so low may be partly due to valuations that are too high, but that is long history.
Therefore: Such dark clouds, which weigh heavily on share prices, can be an invitation, especially for big tech stocks. Of course, not every opportunity has to be a purchase. Some, however, which have particularly clear business models, have recently simply become too cheap. Good for the investors who took advantage here.
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