What a week!
The “QQQ-is-overpriced-trade” got completely AAPL’d…and AMZN’d…and FB’d
The only major tech firm that truly disappointed on earnings was Google.
I am not sure what is going on with GOOGL, but they are in danger of being left behind.
the MAGAF stocks all cleaned up on earnings….except GOOGLE
The tiers for stocks used to be Microsoft, Apple, Google, and Amazon…
The next tier was FB all alone
Then NVDA, TSLA, INTC, and AMGN and the other QQQ stocks worth over 100 billion.
With the move higher in all those names except GOOGLE we might break it up this way
Tier 1: AAPL, AMZN, MSFT
Tier 2: GOOG/GOOGL, FB, and TSLA
Tier 3: NVDA, INTC etc
Why is this important… we have to be aware that those tier 1 names are going to draw more and more capital.
Stocks moving out of that tier will get sold, stocks moving toward that tier will be bought.
This would make Facebook and even Tesla buys and Google a sale.
One thing to be aware of is this:
This market is full of lemmings.
Money begets money, and losers begat losers.
INTC has a PE of 9…no one wants to own them cause they are behind…GOOGLE saw DECLINING revenue…
I am not sure anyone is going to want it either.
WIth MSFT getting TikTok, FB seeing a huge pop in earnings, and TSLA being well TESLA…
Could combine to suck up a lot of GOOGLE investment dollars
Your Only Option,