NASDAQ 100 Big Cap Tech To Outperform

Mega cap tech stocks have lagged the broad NASDAQ and the S&P 500 for many months.  Recent market action suggests that this could be changing.  Apple makes up 12% of the NASDAQ 100 Index alone.  A new uptrend for the world's largest technology company by market cap would pull the NASDAQ 100 Index into the lead. It's also worth noting that other tech giants like MSFT, CSCO, INTC, AMZN and GOOG also have bullish charts.  Follow the QQQ.

Microsoft Is The Most Underrated Tech Company

While analysts like to continually make reference to Apple's large $30B cash reserve, they seem to overlook the fact that Microsoft has more than double that.  With $76B in cash and growing, Microsoft has more in cash than the total market cap of most companies in the NASDAQ 100 Index.  It has also increased its revenue and profit year-over-year with little upside response in its stock price.  I think Microsoft will surprise the market with a significant upside breakout sooner than later.  Like many first dot.com generation tech companies, its stock price has gone nowhere for >10 years.  It's a bargain at this price.

Is Apple Preparing For Another Leg Up?

Apple is up in the premarket today after reporting earnings that we're not quite as bad as analysts had suggested after many downward revisions.  The market has responded modestly and it should open up ~5% today.  Whether or not it holds is another story and is largely dependent on the broad market.  Regardless, the market has more or less written Apple off completely.  With almost $400B in market cap, a P/E of 10 and a dividend yield of 2.8%, the market is pricing it like a utility company not a tech company.  Over the past several months, it has formed a base pattern similar to that in 2009.  Maybe I'm just seeing things...