Shares of the “magnificent seven” American major tech companies – Apple, Alphabet, Amazon, Microsoft, Nvidia, Tesla and Meta (recognized as extremist and banned in Russia) – are in a bubble that will soon burst. writes about this Bloomberg Reference is made to the analysis of Bank of America strategists.
Appetite for tech stocks remains unabated in 2024, with the Magnificent Seven already up nearly 12%. Since its low in December 2022, the indicator is up nearly 140%.
But BofA analysts say recent fund flow data shows global investors are increasing their bets. Thus, according to EPFR data, while approximately $ 2.3 billion was invested in funds focusing on shares of technology companies in the week before February 14, the volume of investments in such funds in the last four weeks alone reached almost $ 60 billion. record for two years.
Meanwhile, BofA noted that this is not yet the growth observed during the Internet bubble for the Nasdaq Composite (+190%) or FAANG stocks (+230%). However, analysts concluded that “no two bubbles are the same.”
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