100s of titles, one news app for just $10 a month.
Dive Deeper:
Dow Jones Futures Jump; TWTR Stock Crashes, Pares Losses On Elon Musk's Twitter Deal Tweets
Futures are rising. Will this bounce stick? TWTR stock initially crashed as Tesla CEO Elon Musk put the Twitter deal…
3 BIG Reasons Why Stocks Might Finally Be a Buy
The best time to buy is always when you want to least. I believe you should face the fear and…
Gene Munster Turns Cautious On Tech Stocks, But Not Apple Or Tesla: Here's Why
Loup Ventures' Gene Munster is cautious on the broader technology sector, but there are two big tech names he remains…
Dow Jones Rallies; Twitter Plunges After Elon Musk Says Deal 'On Hold'
The Dow Jones Industrial Average rallied 250 points Friday. Twitter plunged after Elon Musk tweeted the deal is "temporarily on…
One subscription that gives you access to news from hundreds of sites
Dow Jones Jumps As Stocks Strike Back; Twitter Plunges On Elon Musk Move; Warren Buffett Stock Offers Buy Point
The Dow Jones rallied as stocks fought back. Twitter plunged on a move by Tesla CEO Elon Musk. A Warren…
Dow Jones Cuts Losses After New Inflation Data; Disney Tumbles On Earnings
The Dow Jones Industrial Average dropped after inflation data Thursday, as the market correction worsens. Disney tumbled on earnings results.
Get all your news in one place
Latest Business news:
Clearview AI cops $13m fine in the UK, with help from Australia
Controversial facial recognition firm Clearview AI has been handed a $13.3 million fine by the UK privacy watchdog following a…
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
NSW government announces subsidy for waterlogged North Coast timber industry
Timber mills in Northern NSW have had to look further and further afield for wood in the wake of flooding…
Samsung commits $356 bn in investments with 80,000 new jobs
Seoul (AFP) - South Korean conglomerate Samsung Group on Tuesday unveiled a massive 450 trillion won ($356 billion) investment blueprint…
Aust 'back on the map' for green investors
The prospect of a government with more ambitious climate and energy transition plans has put Australia back on the map…
Putin’s State Oil Champion Suffers Biggest Production Drop
The state-run oil champion led by a close ally of President Vladimir Putin has seen the largest drop in production…
From analysis to good news, read the world’s best news in one place
Davos booster for $18 billion fund to fight AIDS, tuberculosis and malaria
A global health fund has raised a third of the $18 billion it says is needed to reverse setbacks caused…
World’s top fertiliser maker sees two years of high prices
In more bad news for farmers, a fertiliser that's key for crop production across the world will remain expensive for…

Why Apple, Tesla Analyst Thinks Mega-Cap Underperforming Nasdaq Is 'Healthy Market Dynamic'

By Shanthi Rexaline

U.S. markets sought direction for most of Thursday before ending on a subdued note. But there could be a silver lining to this cloud, according to prominent Apple, Inc. (NASDAQ: AAPL) analyst and Loup Funds co-founder Gene Munster.

What Happened:  The Nasdaq Composite Index is still up 16% from pre-COVID levels and the four mega-cap tech names - Alphabet, Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG), Apple, Tesla, Inc. (NASDAQ: TSLA) and Microsoft Corporation (NASDAQ: MSFT) – are up a steeper 113%, Munster said in a tweet.

The Thesis: The analyst noted that many tech investors do not accept that the sell-off is done until these mega-caps have sold off. They get more nervous when the overall market plunges, he added.

On Thursday, the four mega-caps underperformed the broader market, the analyst pointed out.

While the Nasdaq ended little changed with a positive bias, Google, Apple, Tesla, and Microsoft lost 0.67%, 2.69%, 0.82%, and 2%, respectively.

Munster noted that at one point during Thursday's session, the Nasdaq was down 1.8% compared with a 3.5% drop for these four stocks.

"I view this market dynamic as healthy because it starts to remove the wait to buy until $MSFT, $AAPL and $TSLA blow up fear," the analyst said.

The Invesco QQQ Trust (NASDAQ: QQQ) ended Thursday's session down 0.24% at $291.15, according to BenzingaPro data. 

Related Link: Apple Analyst Warns Of 'Considerable Risk' For Tech Sector In Coming Months

 

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Dow Jones Futures Jump; TWTR Stock Crashes, Pares Losses On Elon Musk's Twitter Deal Tweets
Futures are rising. Will this bounce stick? TWTR stock initially crashed as Tesla CEO Elon Musk put the Twitter deal…
3 BIG Reasons Why Stocks Might Finally Be a Buy
The best time to buy is always when you want to least. I believe you should face the fear and…
Gene Munster Turns Cautious On Tech Stocks, But Not Apple Or Tesla: Here's Why
Loup Ventures' Gene Munster is cautious on the broader technology sector, but there are two big tech names he remains…
Dow Jones Rallies; Twitter Plunges After Elon Musk Says Deal 'On Hold'
The Dow Jones Industrial Average rallied 250 points Friday. Twitter plunged after Elon Musk tweeted the deal is "temporarily on…
One subscription that gives you access to news from hundreds of sites
Dow Jones Jumps As Stocks Strike Back; Twitter Plunges On Elon Musk Move; Warren Buffett Stock Offers Buy Point
The Dow Jones rallied as stocks fought back. Twitter plunged on a move by Tesla CEO Elon Musk. A Warren…
Dow Jones Cuts Losses After New Inflation Data; Disney Tumbles On Earnings
The Dow Jones Industrial Average dropped after inflation data Thursday, as the market correction worsens. Disney tumbled on earnings results.
Get all your news in one place