Welcome to the Golden Eagle Eye - Eye on the Stock Market segment featuring macroeconomic and stock market commentary. We have Robert Zuccaro with us, Founder & CIO of Golden Eagle Strategies. He is a quant pioneer specializing in aggressive growth stock investing and author of the book "How Wall Street Reshaped America’s Destiny".
I want to talk about the death of big tech. Over the past 10 years, and this is 10 years ending 2021:
- Google's sales grew by 23% annualized, in the last quarter they grew by 6%.
- Apple grew its revenues by 13% annualized for 10 years, their rate of growth has dropped 8%.
- Facebook (or renamed Meta) annualized at 15%, their sales were -4% in the last quarter.
- Amazon annualized 27%, dropping to 15%.
- Netflix annualized 26%, dropping to 6%.
- Microsoft annualized 14%, dropping to -2%.
- Tesla annualized 64%, dropping to 24%.
And you know what's very interesting in the current environment, this surprised me. In the last quarter, S&P revenues grew on average 13% versus 8% for NASDAQ companies. So that underscores a trend that big tech, and we're talking about the big tech companies, will never dominate like they have in the 10-year period ending 2021.
Technology still has a big footprint on the US economy. However, the tech companies that are going to lead the way up will be small to mid-size tech companies that will be growing very rapidly. As a result of that, once again, the NASDAQ over the next five years, over the next 10 years should outperform the S&P 500index.
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Please note, that the thoughts expressed in this podcast are those of the presenter. This is not, nor should it be considered an offer or a solicitation of an offer for investment.