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Tech stocks gathered titans during Wednesday’s regular session, noting big one-day movements, as investors appeared optimistic with their expectations under the new administration of President Joe Biden.
How Biden took the oath of office in Washington, DC,
Alphabet
(ticker: GOOGL) thrives among the best in big tech, rising 5.4% to $ 1880.07, which marks a record. Shares of big tech companies went well too.
Amazon.com
(AMZN) rose 4.6% to $ 3263.38,
Apple
(AAPL) advanced 3.3% to $ 132.03, and
Facebook
Shreap (FB) 2.4% to $ 267.48.
Microsoft
stock (MSFT) rose 3.7% to $ 224.34 on Wednesday.
“Overall there is a speculation that Biden will become bullish for stocks, and especially the tech sector,” said Dan Ives, Wedbush tech analyst Barron’s. “Biden will begin to reinforce China’s tensions, and there is a lot of pressure on motivation and spending. That is going to accelerate economic recovery in the second half of the year. ”
Wednesday’s rally comes amid bipartisan criticism of the U.S.’s largest tech companies, and several legal actions against trust by state authorities and federal agencies charged with regulating their behavior. Investors have largely eliminated foreign and domestic regulatory concerns so far.
Ives says there is no end to the battle between Washington and the tech companies, but at this stage, investors don’t see a similar resolution for a year or more, —they enable it the companies keep pace. “It’s a long-term threat to the technical stalkers,” Ives says. “But for now, there is still a green light to be a technology because there is a risk of a break in the risk of a longer tail.”
Wedbush is still bullish on tech stocks, and while there is still risk in many of the big tech stocks, Ives says another 25% of those are upside down. Apple is Ives ’favorite name because it helps people who upgrade their smartphones to sell 5G models, and there’s little risk of the government going bankrupt.
Ives is also expecting a strong earnings season.
Netflix
employment reported after the end of Tuesday, surpassing 200 million people. The streaming giant said its cash-flow position had settled after years of debt financing to grow its library of video content.
“I expect a tech blowout earnings season in the next few weeks,” Ives said, adding that cybersecurity companies should report strong results, along with big names like Facebook, Microsoft, and Alphabet, among others.
Write to Max A. Cherney at [email protected]