August 5, 2021, | AtoZ Markets-Big technology companies in the United States break earnings records in the second quarter of the year. Stock gains doubled for some of them. Do you want to know who we are talking about? Read here who are the so-called GAFAM.
The so-called “Tech Giants”, also known as BigTech, Big Five, or GAFAM, are the names given to the largest information technology companies in the U.S. industry. To this group belong Amazon, Apple, Facebook, Google, and Microsoft.
Big technology companies do not have the same rules of the game and regulations as traditional banking. This makes them important players in the financial sector, with significant advantages over the more traditional competition.
Meanwhile, the so-called ‘Big Tech’ continues to benefit from the effect of the pandemic, about online advertising, e-commerce, and consumer spending.
In general, these companies have benefited from the increased use of technology during the global pandemic. Also, each of the five companies has beaten its previous profit record in the second quarter of the year, nearly doubling it for Apple, Alphabet, and Facebook.
Stocks Performance of Technology Giants
As we can see in the graph, compared to Q2 2020 (light blue bar), Q2 2021 (dark blue bar) has been incredible.
We can also see on the graph (pink line) the previous record in Q2 (second quarter).
In addition, a few days ago, Amazon reported another record quarter. The e-commerce giant increased its revenue by 27% in the second quarter of the year, reaching $ 113.1 billion. The increase was associated with strong growth in cloud services and the advertising sector.
However, not everything has been perfect for Amazon, and in recent days, it received a historic fine from a regulatory agency.
In conclusion, the technology stocks broke records in the second quarter of the year driven by global technological progress.
Amazon: Stocks with a Good Perspective
Weekly ChartIf we review the weekly chart of Amazon shares, we can see that the price is still in optimal conditions for purchase.
If we use a Fibonacci extension, we can see that the 61.8% level is at $ 4076.12. Likewise, the maximum for the year is $ 3774.30, and the current price is $ 3378.44.
However, for this operation to be carried out, we must be reviewing the uptrend line since March 15, 2020. The price marked a minimum of $ 1609.99 at this date.
On February 2 of this year, the price marked a new important low at $ 2,881.02. For this trade to be successful, we need the uptrend line to remain in place and not be broken.
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