The recent round of big tech quarterly earnings confirmed what some investors already suspected: these behemoths are not slowing down. Amazon, Meta Platforms, and Netflix delivered not only impressive bottom-line beats but also forward guidance that sent their stock prices soaring. For anyone watching from the sidelines, a sense of FOMO (fear of missing out) might be setting in.
Here’s where my perspective comes in: it’s natural to worry about buying stocks seemingly at the top of their ascent. The principle of “buy low, sell high” often sits heavy on our minds. Yet, these aren’t simply speculative tech ventures with questionable paths to profit – they’re titans of their respective sectors, established and growing.
That’s not to say investors should blindly pour money in. Let’s break down why those price jumps might have more runway to cover, especially at relatively fair valuations.
Netflix
Remember those predictions of doom about streaming reaching saturation? Turns out Netflix doesn’t agree. Adding millions of subscribers and not being shy about expanding their content library shows they’re playing the long game. My thought on the WWE deal? Smart marketing – while core audiences might overlap, it taps into a passionate base ready to shell out for specialized content.
Of note is the strong Technical Rank, meaning analysts see upward trends in earnings potential. Sometimes, “the numbers don’t lie” is truly relevant, and the numbers here tell a story of growth. The bull flag chart pattern is intriguing, though cautious investors might hold out for validation above the $564 breakout point. I believe those sitting out might end up wishing they jumped aboard during those lower dips.
Meta Platforms
Meta seems to finally be taking shareholder returns seriously. Dividends? Buybacks? This was unimaginable a few years ago. Increased profitability with declining expenses (even amidst heavy metaverse investment) is honestly promising. While the metaverse gamble is still unfolding, I view these traditional shareholder incentives as a bullish sign.
Another strong Technical Rank further bolsters confidence. That “picture-perfect bull flag” might actually have some staying power. For me, the breakout target for Meta would be exceeding $474, while staying wary of it dropping below $454 in case of some short-term market wobbles.
Amazon.com
This one feels like a no-brainer if you’ve even remotely followed its trajectory. E-commerce is here to stay, and so is cloud computing. Sprinkle in advertising as a booming revenue stream, and you have a company firing on all cylinders. While I’m sure there will be temporary setbacks, it’s difficult to fault long-term optimism as they consistently outperform industry expectations.
The Amazon breakout might happen sooner than the others with that $171.50 trigger point. It’s worth remembering that sometimes stocks that “go up” simply keep going because the underlying strength warrants it.
Bottom Line
It’s always smart to have a healthy dose of skepticism, and no investor should jump headfirst based on one hot quarter. However, the strength shown by these three companies isn’t a fluke or a blip. This is a trend backed by fundamentals, and there’s nothing wrong with feeling some regret if you choose to watch them continue their growth journey without you on board. No one can predict the future with certainty, but my stance is this: tech dominance still looks far from finished.
