Tech stocks continue to appreciate regardless of any ebb and flow in the COVID-19 backdrop, particularly with the delta variant taking a foothold in many swaths of the world. Conspicuously missing from this impressive bull market in the technology cohort is Amazon (AMZN). Technology underpins the stay-at-home economy and the so-called back to normal economy; this is especially true regarding Amazon. Now more than ever, technology serves an integral part of every slice of the economy as these stocks have remained strong despite the massive rotation into value stocks throughout 2021. Stocks such as Apple, Microsoft, Google, and the Invesco QQQ Trust have witnessed massive appreciation thus far in 2021. A potential gem in this cohort lies with Amazon as this stock has not participated at all in the 2021 rally and essentially flat year-to-date. Amazon has been beaten down since reporting its most recent earnings and incorrectly correlated with only the stay-at-home economy plays. Amazon presents value at these reduced levels and looks like a compelling buy for long-term investors.
Pricing Power: The Value Rotation and Roaring Tech
The market has witnessed a massive sea change as the large-scale vaccination efforts in the US are coming to fruition, albeit risks remain with the delta variant. The Dow Jones, S&P 500, and Nasdaq have rallied to all-time highs while recovery and value names have recaptured more than lost market capitalization due to the COVID-19 impact. Meanwhile, many technology stocks that powered the market higher in the initial stages of this post-COVID-19 rally stalled out early in 2021 to now rip higher as well. Now, tech participation has been a major driver to propel the markets even higher. Continue reading "Tech Continues To Power Higher: Amazon Gem"
