The pressure will be on when Apple reports its latest quarterly results after the bell on May 4. Better-than-expected earnings from fellow trillion-dollar market club members Alphabet and Microsoft have lifted equities back to their 2023 peak — and set the stage for more. Apple To take the market to new heights.
Investors are obsessed with these three companies for good reason. Together they account for more than $7 trillion in stock market value and 17% of the widely followed S&P 500, Their collective performance has a tremendous impact on the benchmark, Exchange Traded Funds (ETFs) and personal portfolio value.
Just because they hold the most clout in the global equity market, however, doesn’t mean they have the most upside.
There are about 50 mega-cap companies that are not named Apple, Microsoft, or Alphabet. The vast majority do not live in the technology sector. From e-commerce leaders to drug makers, the fundamentals of many of these companies are so-called ‘MAMAA’ stocks (which are Amazon and meta platform for the trillion-dollar trio).
According to Wall Street research groups, these are the three mega caps that will see the most gains over the next 12 months.
Which mega cap stock has the highest upside?
Alibaba Group Holding Limited (NYSE: BABA) Highest upside by far of any mega cap in sell side analyst opinion. of china e-commerce The giant has the potential for 78% returns over the next year, based on more than a dozen firms who follow the stock closely. The Street is unanimously bullish on Alibaba, which is something Apple and Microsoft can’t claim (but Alphabet can).
Why Are Analysts So Bullied About Alibaba? for one, chinese economy Looks good on the road to recovery. First-quarter gross domestic product (GDP) growth was a better-than-expected 4.5%, led by a strong rebound in consumer spending.
Second, Alibaba’s plan split There is potential to unlock value across six different business units. clouds and other section There should be greater autonomy and flexibility to pursue growth initiatives outside the core commerce business. While the plan is to keep everything under one roof for now, management has suggested that there could be separate IPOs in the future.
Make no mistake, though, it’s Alibaba’s massive retail footprint that’s leading the charge. Domestic and international commerce together made up 76% of the company’s sales last year. Alibaba’s dominance domestically and moves to capture growth from the US and other international markets are the main reasons analysts are expecting strong financial results.
What Could Profit Be in Taiwan Semiconductor Shares?
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) While recovering well from its November 2022 low, analysts believe there is room for further upside. chipmaker consensus price target Around $119, which means more than 40% upside. Like Alibaba, all firms that cover Taiwan Semiconductor Currently Buy rating.
Last month, the company beat the Street’s earnings forecast, demonstrating resilience in a tough macro environment. Although inventory pileup and soft-end market demand led to a 5% revenue decline, Taiwan Semi sees strong interest in its new 5 nanometer chips For smartphones and other electronic devices. Older product sales also did well due to improved demand from automotive and industrial customers.
Customer inventory adjustments are expected to subside in the coming months, making year-over-year comparisons easier and a return to top-line growth in the back half of 2023. In addition, Taiwan Semi is expected to benefit globally. digitization trends that will make digital technologies a bigger part of our everyday lives – and a growing need for the company’s semiconductor products.
Is Amazon’s Stock Weakness an Opportunity?
Amazon.com (NASDAQ: AMZN) Has the third best return potential according to Wall Street. It’s telling that the stock is up about 25% from its recent low. The bullish trend should continue, with analysts praising the company’s double beat in Q1 and healthy guidance for Q2.
after market disagree Q1 releaseHowever, instead AWS is focusing on slowing growth in the cloud business. Sales in the major profit center have bounced back well from their brisk pandemic pace due to weak economic conditions. But with global cloud transformation only on pause, analysts see weakness in Amazon’s share price there is an opportunity,
Like other mega-cap industry leaders, Amazon has been forced to eliminate jobs in its core online shopping business. This shows the cautious approach of the management consumer activity Although there are signs of improvement. As with AWS, these challenges should be temporary and lend themselves to a larger trend — the ongoing global shift from brick-and-mortar to e-commerce retail.
The views and opinions expressed here are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
