Amazon and the rest of Big Tech are on fire

Investors who put their faith in Jeff Bezos are being rewarded. Again.Amazon's shares soared 5% to an all-time...

Posted: Apr 27, 2018 5:04 PM
Updated: Apr 27, 2018 5:04 PM

Investors who put their faith in Jeff Bezos are being rewarded. Again.

Amazon's shares soared 5% to an all-time high Friday after the company reported stellar first-quarter results. So much for President Donald Trump's anti-Bezos/Amazon/Washington Post tweets hurting the company, huh?

The Amazon surge helped lift Amazon's market value above $775 billion. Only Apple, with a market cap of nearly $820 billion, is worth more.

And the net worth of Bezos, already the world's wealthiest person, is now $135 billion, according to Forbes. That's almost $45 billion more than the second-richest person on the planet: Microsoft co-founder Bill Gates.

But investors in Amazon weren't the only ones popping champagne corks Friday.

Shares of Microsoft and Intel also rose after their latest earnings. Microsoft hit a record high too. Despite the strength in tech stocks the Nasdaq, Dow (which Microsoft and Intel are both part of) and S&P 500 were all slightly lower.

Tech earnings have been extremely robust so far this quarter. Google owner Alphabet reported healthy gains in earnings and revenue, although investors are a little nervous about how much the company is spending.

Facebook posted earnings and sales that blew away forecasts -- a sign that both users and advertisers are not shying away from the social network despite the Cambridge Analytica data scandal.

And Netflix also wowed Wall Street, reporting that it now has 125 million subscribers worldwide.

Related: Jeff Bezos and Amazon are on top of the world

Most tech companies have benefited from healthy demand for their products. The recent tax cut in the US is helping lift profits too. Amazon, for example, reported an effective tax rate of just under 15% in the first quarter, compared to a tax rate of 24% a year ago.

Matt Schreiber, president and chief investment strategist of WBI Investments, thinks that tech companies are also going to use some of the savings from lower taxes to buy back more stock as well -- a move that will boost earnings per share.

"The big tech companies are awash in cash and have had great earnings," Schreiber said. "Amazon and other tech companies are growing like a stinkweed. The fundamentals are strong."

But earnings season is starting to wind down. Apple will release its latest results on May 1. There are growing concerns that iPhone sales -- particularly for the iPhone X -- may disappoint after a big chip supplier for Apple reported sluggish demand.

That's a big reason why Apple's stock has lagged the broader market this year. But investors are still in love with tech broadly. The Nasdaq is outperforming the Dow.

The strength of Amazon, Netflix and Intel is a big reason why. And two other tech leaders, networking equipment giant Cisco and chip company Nvidia, report results in mid-May too. Both stocks are up more than 15% this year.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 144544

Reported Deaths: 3729
CountyCasesDeaths
DeSoto956999
Hinds9541193
Harrison6825105
Jackson6068116
Rankin523796
Lee480294
Madison4602102
Forrest367185
Jones344687
Lauderdale3343142
Lafayette313347
Washington3088106
Lamar281849
Bolivar237883
Oktibbeha237760
Lowndes228362
Neshoba2171113
Panola211047
Marshall207247
Leflore200789
Pontotoc193227
Monroe189577
Sunflower189554
Lincoln183964
Warren172157
Tate163349
Union160125
Pike160058
Copiah158840
Yazoo150638
Scott149929
Coahoma147342
Itawamba145533
Alcorn143724
Simpson143553
Pearl River142967
Prentiss139526
Grenada136344
Adams135948
Leake131643
Holmes124461
George121623
Tippah120930
Covington117234
Winston115824
Wayne115722
Hancock114137
Marion110746
Attala106233
Tishomingo106042
Newton102829
Chickasaw102332
Tallahatchie94727
Clarke88253
Clay86726
Jasper81121
Walthall74328
Stone72314
Montgomery71925
Calhoun71213
Carroll70514
Lawrence69914
Noxubee69017
Smith68616
Yalobusha67926
Perry65225
Tunica59519
Greene58422
Claiborne57416
Jefferson Davis54117
Humphreys52518
Amite50814
Benton48217
Quitman4786
Webster41614
Kemper40815
Wilkinson38422
Jefferson34011
Franklin3185
Sharkey30617
Choctaw3057
Issaquena1114
Unassigned00

Alabama Coronavirus Cases

Cases: 234080

Reported Deaths: 3459
CountyCasesDeaths
Jefferson30620491
Mobile19306358
Tuscaloosa12501148
Madison12410146
Montgomery12040232
Shelby980576
Baldwin826984
Lee753964
Morgan618247
Calhoun5997113
Etowah590564
Marshall581953
Houston507038
DeKalb463535
Cullman412636
Limestone404544
St. Clair398455
Elmore393961
Lauderdale382953
Walker349096
Talladega335942
Colbert296341
Jackson291924
Blount276336
Autauga263439
Franklin244833
Coffee233415
Dale226654
Dallas220231
Russell21803
Chilton216937
Covington212533
Escambia194431
Tallapoosa169290
Chambers168048
Pike155514
Clarke155419
Marion134535
Winston123723
Lawrence122436
Geneva11748
Marengo116924
Barbour116110
Pickens115318
Bibb114217
Butler113741
Randolph99821
Cherokee98924
Hale91631
Washington90018
Clay89423
Fayette84416
Henry8426
Lowndes78729
Monroe76811
Cleburne74414
Crenshaw70330
Macon70020
Bullock69019
Conecuh66814
Perry6686
Lamar6267
Wilcox62418
Sumter55322
Choctaw41713
Greene40217
Coosa3074
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