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 6:04 PM
Updated: Apr 27, 2018 6:04 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.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 33068

Reported Deaths: 2068
CountyConfirmedDeaths
Marion9524558
Lake3494175
Cass15897
Allen141966
St. Joseph122134
Hendricks114268
Hamilton113292
Elkhart110128
Johnson1092106
Madison58459
Porter50522
Bartholomew49034
Clark47941
LaPorte42022
Tippecanoe3823
Howard37824
Delaware37636
Jackson3721
Shelby36822
Hancock32727
Floyd31739
Boone30535
Morgan27724
Vanderburgh2592
Montgomery23417
White2308
Decatur22431
Clinton2221
Noble20421
Grant19721
Dubois1903
Harrison18921
Henry16910
Greene16824
Monroe16512
Warrick16528
Dearborn16521
Vigo1538
Lawrence15223
Miami1401
Putnam1357
Jennings1294
Orange12422
Scott1203
Ripley1106
Franklin1098
Kosciusko1011
Carroll933
Daviess8416
Steuben812
Marshall801
Newton7610
Wayne756
Fayette747
Wabash742
LaGrange682
Jasper661
Washington511
Jay490
Fulton471
Clay461
Rush452
Randolph453
Jefferson431
Pulaski410
Whitley383
Owen351
Sullivan341
DeKalb331
Brown331
Starke323
Perry280
Wells270
Benton260
Huntington262
Knox250
Tipton241
Crawford230
Blackford222
Parke190
Spencer191
Switzerland190
Fountain182
Posey160
Gibson142
Adams131
Ohio130
Warren121
Vermillion100
Martin90
Union80
Pike60
Unassigned0161
West Lafayette
Few Clouds
81° wxIcon
Hi: 79° Lo: 57°
Feels Like: 81°
Kokomo
Clear
73° wxIcon
Hi: 75° Lo: 54°
Feels Like: 73°
Rensselaer
Scattered Clouds
75° wxIcon
Hi: 76° Lo: 52°
Feels Like: 75°
Fowler
Scattered Clouds
75° wxIcon
Hi: 75° Lo: 54°
Feels Like: 75°
Williamsport
Scattered Clouds
78° wxIcon
Hi: 78° Lo: 55°
Feels Like: 79°
Crawfordsville
Clear
76° wxIcon
Hi: 77° Lo: 55°
Feels Like: 76°
Frankfort
Scattered Clouds
78° wxIcon
Hi: 76° Lo: 54°
Feels Like: 79°
Delphi
Scattered Clouds
76° wxIcon
Hi: 77° Lo: 54°
Feels Like: 78°
Monticello
Scattered Clouds
76° wxIcon
Hi: 78° Lo: 53°
Feels Like: 78°
Logansport
Scattered Clouds
75° wxIcon
Hi: 75° Lo: 52°
Feels Like: 75°
Cooler, less humid weather ahead by the weekend.
WLFI Radar
WLFI Temps
WLFI Planner

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events