Shares of Amazon (AMZN) came under pressure following Alphabet’s (GOOG, GOOGL) disappointing fourth quarter earnings report. This market concentration has heavily impacted the dominance of The Magnificent Seven components – the group of tech stocks comprised of Alphabet, Apple (AAPL), Nvidia (NVDA), Tesla (TSLA), Amazon (AMZN), and Meta Platforms (META), and Microsoft (MSFT).
Brad Klapmeyer, senior portfolio manager at Macquarie Large Cap Growth Fund, joins Market Domiantion Overtime to points out that the focus on these companies has led to the underperformance of other solid stocks.
So, we just want investors to be aware not only of what they’re holding in their portfolios. We want them to be concentrated, actively concentrated, use discretion on those,” Klapmeyer says. “But we also want investors to be aware if they think that they’re investing in a passive, diversified ETF, they may be in the same situation where 55% of their passive diversified ETF is actually in these large positions.”
Additionally, Klapmeyer emphasizes that despite this, companies like Microsoft have earned their spot, citing its impressive $250 billion revenue and $33 billion in additional revenue last year.
#youtube #stocks #amazon
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