Sources vary on the exact numbers, but these 5 large cap tech companies are all high margin with double digit growth.
They have PEGs between .85 and 1.22. As a basket, it’s a 1.03 PEG, with net cash.
Last quarter they announced over $62 billion in buybacks, with net insider buying.
They’re widely covered, with high profile strategists Stephanie Link (a killer), Tom Lee, & Dan Ives all vocally bullish on multiple of them.
They’re down 36-50% from their 52 weeks highs, about 39% as a basket. A gobsmacking, double bear market level selloff.
But the real story is the recent relative outperformance. They are all UP from their February intraday lows. They are up between 2.5 and 10.4%. As a basket, it’s about 4% up vs. Nasdaq down around 9%. 4 out of 5 are up today, between 1.95 and 5.59%. Nasdaq is down .73%, S&P is down .39%.
I will put Vista Partners Robert Smith’s CNBC interview in the comments. He breaks down how increased efficiencies from AI should provide a tailwind, not a drag, for the sector, and how enterprise architecture is necessary for early stage AI deployment.
The companies are Autodesk (ADSK), Applovin (APP), Salesforce (CRM), Servicenow (NOW), and Veeva Systems (VEEV).
So I really like enterprise software for a trade lol. Happy hunting!