Big tech giants were already big before the pandemic, but Covid has only made them bigger - much bigger. Almost every aspect of our lives, weather it be tools for work and education, the games we play, or the way we shop; people and businesses have become so much more reliant on technology during the past year. During the biggest economic turndown for decades, spending increased ten fold on computers, videogames, online retail, digital Ads, and cloud services.
The result was dizzying growth for some of the largest corporations in history—and for their stock prices. At a time when companies such as airlines and bricks-and-mortar retailers struggled to survive, combined revenue for the five biggest U.S. tech companies— Apple, Microsoft, Amazon, Google, and Facebook —grew by a fifth, to $1.1 trillion. Their aggregate profit rose an even faster 24%. And their combined market capitalization soared by half over the past year to a staggering $8 trillion.
Our choice at Bulls & Bears has to be Apple. Although it has a lofty price, we feel there is still plenty of room to the upside, especially with the recent news about their EV partnership with Kia Motors... could we be looking at a parabolic gain similar to Tesla?