tl;dr
Monica L. Correa, SA News Editor Microsoft (MSFT) was the most under-owned large-cap tech stock this quarter, according to Morgan Stanley’s U.S. Tech report, published on Monday. MS analysts track institutional ownership data for 15 of the largest cap tech companies in their coverage, “based on...
Monica L. Correa, SA News Editor
Microsoft (MSFT) was the most under-owned large-cap tech stock this quarter, according to Morgan Stanley’s U.S. Tech report, published on Monday. MS analysts track institutional ownership data for 15 of the largest cap tech companies in their coverage, “based on each company's average weight within the top 100 actively managed portfolios relative to the same company’s weighting in the S&P 500.” The report said that, on average, after adjusting for market cap and earnings beats, there is a strong relationship between low active ownership and the stock’s future performance. While Microsoft (MSFT) was the most under-owned, Meta Platforms (META) remained the most over-owned of the mega-cap stocks. Under-ownership of mega-cap stocks was “largely unchanged,” according to the research, down 84 basis points at the end of the third quarter, compared to up 18 basis points for the rest of the large-cap tech. The gap between Microsoft’s (MSFT) S&P 500 (NYSEARCA:SPY) institutional ownership increased by 4 basis points this quarter to -2.21%, and the gap between Apple’s (AAPL) S&P 500 (SPY) institutional ownership decreased by 17 basis points to -2.03%. In addition, Qualcomm Inc. (QCOM) had the gap between its institutional ownership and S&P 500 (SPY) weighting increase by about 50 basis points, which is “more than any other large-cap tech stock and the largest quarter-over-quarter increase in the history of our data,” MS analysts said. The stock was the most over-owned it has been since 2013. Also, Meta Platforms (META) was the only stock whose institutional ownership was greater than the S&P 500 (SPY) weighting among the top five mega-cap tech stocks. “On average, stocks would experience a technical pull higher when active ownership is much lower than the market, and vice versa,” the report said. The most under-owned stocks tracked within the large caps in tech, relative to their weighting in the S&P 500 (SPY), are Microsoft (MSFT) at -2.21%; Apple (AAPL) at -2.03%; Nvidia (NVDA) at -0.67%; Amazon.com (AMZN) at -0.41%; and Alphabet (GOOGL) at -0.24%. Excluding Microsoft (MSFT), the average active ownership weighting of the rest of the software stocks versus the S&P 500 (SPY) decreased by 14 basis points quarter-over-quarter and is now below the trailing three-year average of 0.55%.
More about Microsoft Corporation
Microsoft Corporation is a prominent player in the technology industry, offering a range of software and hardware products. With a market cap of $2.8 trillion and a current stock price of $36.64, the company has shown a steady growth rate of 10.3% over the past year. The Relative Strength Index (RSI) of 29.35 indicates that the stock is currently oversold, suggesting a potential buying opportunity. However, the Bollinger Bands with a width of 0.353 indicate a low volatility environment, which could lead to a consolidation phase. The stock has recently broken out of a head and shoulders pattern, signaling a potential bullish trend. However, given the overall market sentiment and potential uncertainties, it is important to consider the risks associated with the current analysis. As always, past performance is not indicative of future results, and careful consideration of the market environment is crucial.
More about Meta Platforms Inc.
Meta Platforms Inc. (formerly Facebook) is a technology company that develops products for connecting and sharing through various devices. As of the latest financial data, the company has a market capitalization of $869.20 billion, with a current stock price of $340.08. The stock has shown a 1-year performance of 29.85% and a 5-year performance of 48.97%. Market sentiment appears to be positive, with a Relative Strength Index (RSI) of 1.679, indicating a bullish trend. However, the stock is currently at a resistance level, and there is a potential risk of a pullback or consolidation. It's important to note that past performance is not always indicative of future results, and investors should consider potential uncertainties in the market.
More about Apple Inc
Apple Inc. is a leading American multinational technology company with a strong focus on consumer electronics, computer software, and online services. With a revenue of $274.5 billion in 2020, Apple is the world's largest technology company and the most valuable company since January 2021. As the world's fourth-largest PC vendor by unit sales and the fourth-largest smartphone manufacturer, Apple is a significant player in the technology industry. The stock performance has been positive, with a current price of $180.82 and a 0.135% change. However, market sentiment may be impacted by a decrease in the relative strength index (RSI) by 0.007, suggesting potential risks or uncertainties in the near future. It's important to consider the support and resistance levels, as well as potential bullish or bearish trends, when analyzing Apple's stock performance and market sentiment.
More about Qualcomm Incorporated
Qualcomm Incorporated is a leading American multinational corporation in the manufacturing and radio & TV broadcasting & communications equipment industry, with a market capitalization of $142.19 billion. The stock is currently trading at $126.43, with a 3.1% dividend yield and a P/E ratio of 19.59. The company has a strong RSI of 32.07 and is currently trading below its 50-day moving average of $130. The stock has shown a bearish trend recently, with a negative 0.514 change in price and a -0.227 change in percentage. However, given Qualcomm's critical patents in the 5G and 4G standards, there is potential for a turnaround in the near future.
More about NVIDIA Corporation
NVIDIA Corporation is a leading American multinational technology company focused on the design and manufacture of graphics processing units (GPUs) and system on a chip units (SoCs) for various markets. The company has a market capitalization of $118 billion and a stock price of $114.85. Over the past year, the stock has shown a positive performance, with a 4.16% increase in value. The company's financial indicators, such as a price-to-earnings ratio of 18.18 and a dividend yield of 0.421, suggest a stable financial position. However, with a relatively high beta of 2.055, the stock may be more volatile compared to the market. The market sentiment towards NVIDIA Corporation appears bullish, with a positive outlook on the company's growth potential in the gaming, professional, and mobile computing markets. However, it's important to note the risks associated with the semiconductor industry and potential market uncertainties that could impact the stock's performance in the future.
More about Amazon.com Inc
Amazon.com Inc is a leading multinational technology company with a strong focus on e-commerce, cloud computing, digital streaming, and artificial intelligence. As one of the Big Five companies in the U.S. information technology industry, it has a significant influence on the global economy and culture. The company's market cap is 1.516 trillion, with a current stock price of $3,448.73. The stock has shown a positive trend with a 1-year change of 76.83% and a 5-year change of 554.03%. The Relative Strength Index (RSI) stands at 157.93, indicating overbought conditions. While the company's financial metrics and stock performance are impressive, it's important to note the potential risks associated with overvaluation and market sentiment, as past performance is not always indicative of future results.
More about Alphabet Inc Class A
Alphabet Inc. Class A is a technology company with a market capitalization of $1.72 trillion, making it one of the world's most valuable companies. The stock has a price-to-earnings ratio of 26.19 and a dividend yield of 0.225. The company's revenue is $297.13 billion, with a net income margin of 151.71 and a return on equity of 0.46. The stock has shown a bullish trend, with a 5.22% increase in the last quarter. However, market sentiment is currently uncertain due to the overall volatility in the market, and potential risks associated with regulatory changes and competition in the technology industry.
Disclaimer:
This is not financial advice. Please do your own research before investing in any cryptocurrency.