Pause on rate hikes: Will tech funds ride the wave to higher returns?
Hi, mooers! ![]()
As expected, the Federal Reserve kept the target range for the federal funds rate at 5.25%–5.5% for a second consecutive time in November. As a result, with reduced risk aversion and increased investment appetite, the technology sector is expected to receive higher attention and potentially enter a new round of growth in the short term.
According to Q3 earnings reports from tech giants, the technology industry is taking off again after grappling with a slowdown for close to two years. The net income and profit margins performance of tech giants has reached their highest level in at least 21 months.
In Q3 2023, 3 tech giants—$Microsoft(MSFT.US)$, $Meta Platforms(META.US)$, and $Alphabet-A(GOOGL.US)$—all saw substantial growth in net income, indicating their strong profitability. $Meta Platforms(META.US)$ led the way with a remarkable growth rate of 164%.
$Microsoft(MSFT.US)$ saw the greatest surge in market capitalization, with an increase of 61%, solidifying its position as the frontrunner with a total value of $2.74 trillion. $Microsoft(MSFT.US)$'s revenue from intelligent cloud services Azure and other cloud services demonstrated an unexpected acceleration, with a growth rate approaching 30% instead of the anticipated decline.
John Blackledge, an analyst at Cowen, commented that despite rising costs, all of these companies have seen an increase in margins compared to the previous year. Many investors are also bullish on the future development of tech giants. When it comes to AI, the tech giants are acting “faster and more decisive than I’ve seen incumbents react to a challenge,” said Rick Heitzmann, a partner at venture capital firm FirstMark Capital.
Investing in technology stocks isn't the only way to gain exposure to this market. Funds on Moomoo Fund Hub holding these securities can offer investors a way to balance their portfolios and tap into potential returns spanning different asset classes.
Here are the top 4 tech funds on Moomoo Fund Hub with the highest yields over the past year. Let's take a look at them!![]()
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*The above fund selection is based on the data disclosed in the fact sheets of fund companies.
*The selected currency for the funds in this event is USD. Only one currency/dividend type will be displayed for the same fund.
1) What is your outlook on AI technology? How do you think AI will impact our lives？
2) Are you bullish on the tech market? Which AI tech giant do you believe has the potential for significant growth in the coming years?
3) Will you be adding these tech funds to your investment portfolio in the near future? Why?
13 Nov - 27 Nov
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This presentation is strictly for informational and educational purposes and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
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mr_cashcow : Riding the tech wave!
Jocelynn : ye s
Littlemouse72 : Agree
Woonsc : For me, AI technology outlook remains optimistic, promising profound impacts across industries and daily life, high growth potential in terms of investment. It has potential to revolutionize many sectors of our life such as: healthcare, finance, and transportation. Making gains in productivity and efficiency which takes us humans years to research. Within the tech market, a bullish sentiment prevails, with giants like Google and Amazon's AWS standing out for their extensive AI-driven initiatives and growth potential, having a stake in AI is a must for all!