Technology stocks on the Fall
In terms of technology stocks, huge gains also mean a greater expectation on an upward trend. However, this trend does not fall to always be true in this season. Now, this shows a new way of perspective on development on the side of investors. Thus, it may be concluded that predictions about stocks are the most unpredictable.
Records says it all
In the first-quarter earnings season, it is showing that the tech stocks is really showing huge fall in terms of performance under the broader market. These three giants – Apple, Google parent Alphabet and even Microsoft is having reports from not-so-satisfied investors. The outcome of this came as each saw their market value plunge by around 10%.
That has solid reports from the mighty companies like Amazon.com and Facebook. The reports also say that the Nasdaq Composite Index is at 4.6% for the year and on the other hand, the Dow Industrials and S&P 500 are on the positive side.
However, technology shares were mainly in the lower pre-market trade recently. In some of the technology stocks news, Apple posted its first year-on-year revenue decline since 2003. When it published its second quarter results late on Wednesday, there has been a currency weakness and difficult to match year-on-year comparisons weighed on the maker of iPhones and other mobile devices. Shares in the company were 7.8% lower at $96.16 before. The stock has traded between $92 and $132.97 over the past 53 weeks.
The technology sector is one of few sectors where big banks in the world is recommending to investors to park their money in 2016. This is behind the volatility puts a damper on the markets so far this year. Due to the tumultuous stock market, it has caused many investment firms to already amend their annual outlooks. Likewise, oil prices legged down again, key currencies fell further and U.S. industrial activity continues to contract on weak imports and exports.
Economic analysts have been reiterating that there is an “underweight” recommendation for the energy and industrial sectors, noting that “these conditions warrant a pause in Fed hikes to June.” Instead, investors should stick with sectors that were leaders in 2015 such as technology.