In This Article:
Meta (META) and Microsoft (MSFT) have issued forecasts that are reigniting interest in large-cap tech. Melissa Brown, SimCorp managing director of investment decision research, explains how size and resilience may help these companies navigate uncertainty.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Well, we've had a couple of companies, rather large ones that have come out with some forecasts, right? I'm talking about Meta and Microsoft in particular, um, do you think in this environment that um investors should be taking a renewed look at large cap technology, um, given that, you know, maybe they will be less exposed, or do you even see them as less exposed to what's going on?
I I think certainly, um, the fact that they're big, that they're probably more resilient, you know, if, you know, we do see a resurgence and inflation, for example. Um, they may be able to to navigate that a little bit better. Um, I think we've already seen, you know, investors coming back to some of these these bigger tech names. But, you know, on the flip side of that, going back to the valuation question, they're also more richly valued than most other stocks in the market, um, which makes, uh, makes that a a still a tough decision. Uh, are investors already projecting that they are going to be the earnings winners for the rest of the year, and that's already reflected in stock prices.
