Tech Stocks Continue to Push the Valuation Envelope, but That May Change

Facebook is beginning their defense in the public image of their latest issues with Cambridge Analytica, which is the firm that obtained personal information from millions of users. There are two separate issues and the first is peoples information being used for political gain. Many believe the elections were swayed due to this information being obtained. The second issue that is always prevalent continues to be information security. Not only with Facebook, Under Armour had a data breach that leaked passwords and personal information as well. Why we fail to hear about it as much is because Facebook’s issued surfaced around the same time.

Published over a year ago
View all stories for Technology Select | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Raphi Shpitalnik

The FANG stocks have been thought of as overvalued in the current market climate and that may be trust. Both Facebook and Amazon are off their prior highs, giving investors potential value should the company be fundamentally solid.

President Trump and his Administration have begun putting pressure on these companies for various reasons, from security to market sizes. Combine that with a nearly decade long bull run, it is a recipe for profit taking and portfolio repositioning.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Technology Select income statement, its balance sheet, and the statement of cash flows. Potential Technology Select investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Technology Select investors may use each financial statement separately, they are all related. The changes in Technology Select's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Technology Select's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Technology Select fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Technology Select performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Technology Select shares is the value that is considered the true value of the share. If the intrinsic value of Technology is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Technology Select. Please read more on our fundamental analysis page.

And What about dividends?

A dividend is the distribution of a portion of Technology Select earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Technology Select dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Technology one year expected dividend income is about USD0.21 per share.
Investing in stocks that pay dividends, such as etf of Technology Select Sector, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Technology Select must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Technology Select. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

An Additional Perspective On Technology Select Sector

Apple has announced they are going to release the iPhone 8 in red to give a little spice to their phone image. Also, the company is releasing a less expensive iPad that is geared towards students. The company still earns a significant portion of revenue through iPhone sales so be sure to keep an eye going into Q3 of 2018.

Other tech stocks such as Amazon continue to face pressures as they dominate the market, in almost a monopolistic sense. The Trump Administration has begun to grumble about the company being large and essentially being the market.  

The tech ETF product by SPDR, ticker XLK, has seen a slight pullback off of recent highs, indicating a potential pause in tech stock gains. With volatility back in the market, it is difficult to say where it will head in the short term. Provided the large tech companies are fundamentally sound, investors shouldn’t worry much as these companies are likely to rebound from any pullback.  

What to watch for are the comments from Mark Zuckerberg as he testifies about Facebook’s latest leak. Also, watch for quarterly earnings on many of the large tech companies and understand what their game plans are. It will likely involve product expansion as well as user information security.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Technology Select Sector. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com