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Wall Street getting a bit concerned over the massive valuations of the top 5 technology stocks. Even though they are extremely profitable companies with good business Wall Street worries if any one were to sink. They see that also the rapid rise of other stocks give a bit of a feeling of a bubble again.
In the case of the top 5 Apple, Microsoft, Alphabet, Facebook, Amazon all told 18 percent of the S&P valuation.
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It's no secret that a handful of tech giants have been dominating the stock market, but their leadership has reached a level that is raising eyebrows on Wall Street as being unsustainable.
The top five U.S. companies — Apple, Microsoft, Alphabet, Amazon and Facebook — now make up 18% of the total market capitalization of the S&P 500, the highest percentage in history, according to Morgan Stanley."
https://www.google.com/amp/s/www.cn...arfing-the-market-at-unprecedented-level.html
In the case of the top 5 Apple, Microsoft, Alphabet, Facebook, Amazon all told 18 percent of the S&P valuation.
"
- Apple, Microsoft, Alphabet, Amazon and Facebook make up 18% of the total market cap of the S&P 500, an unprecedented level of dominance, according to Morgan Stanley.
- When Apple has claimed more than 4% of the S&P 500 market cap in the past, the stock underperformed by nearly 9% on average in the next 12 months, said Leuthold Group analyst Phil Segner.
- Bank of America is warning of the "rising correlation and concentration risks" in the market.
- As these tech giants' market caps ballooned to record highs, their income contribution to the broad market decreased in recent years, a red flag for the stock prices, Morgan Stanley said."
It's no secret that a handful of tech giants have been dominating the stock market, but their leadership has reached a level that is raising eyebrows on Wall Street as being unsustainable.
The top five U.S. companies — Apple, Microsoft, Alphabet, Amazon and Facebook — now make up 18% of the total market capitalization of the S&P 500, the highest percentage in history, according to Morgan Stanley."
https://www.google.com/amp/s/www.cn...arfing-the-market-at-unprecedented-level.html