Experts drew attention to a large-scale financial “bubble” in the US stock market. This is directly related to the technology sector and the real financial performance of these companies.
US tech giants are skyrocketing in value, but they can’t bolster their market performance with strong financials. About what opportunities this opens up for investors and whether there is a risk that this “bubble” may burst in the near future – read the material 24 channels.
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New financial bubble in the US
Increasingly heard talk about the formation of a full-fledged “bubble” in the US stock market. In particular, this position shares JPMorgan chief strategist Marko Kolanovic. According to him, everything that is happening now on the American stock exchange is one big speculation that will not end in anything good.
According to experts, this situation is connected with an unprecedented hype around the development of artificial intelligence that broke out after the advent of ChatGPT. This application has gained popularity among both professionals and ordinary people.
New opportunities for investors in the technology sector / Shutterstock photo
Boom in the market and real indicators
The main beneficiaries of the active introduction of artificial intelligence technology have become American technology companies, whose shares are actively rising in price. Whereas Federal Reserve System The US is raising its key rate at the fastest pace in history.
Since the beginning of 2023, the securities of tech giants have already managed to record a significant increase in their quotes. First of all, this applies to companies such as Nvidia and Microsoft. Indirectly, the boom around artificial intelligence also benefits the company Tesla, specializing in the production of electric cars and using the function of autonomous driving. Here are some specific numbers:
Nvidia shares have jumped 2.6 times in price since the beginning of 2023 and are already worth almost $470; Electric car maker Tesla has nearly doubled in value since January, to more than $240 a piece; Shares of Microsoft corporation added in price 25%rising to 330 dollars.
At the same time, the figures in the financial statements of the above-mentioned companies lag behind the growth rates of their shares on the stock exchange. For example, for the second quarter of 2023, Microsoft managed to increase its revenue only marginally (at 2%) – To 52,7 billion dollars. At the same time, the company’s net profit for this period amounted to $16.4 billionwhich is slightly less than the year before.
Risks associated with artificial intelligence
The prospects for the development of artificial intelligence cause skepticism among some market participants. The fact that artificial intelligence will be at the center of the next financial crisis already, in particular, declared U.S. Securities and Exchange Commission Chairman Gary Gensler.
So the experts, obviously, not in vain fear that the active growth of the American technology sector at some point will end with a sharp collapse in quotations – the inflated “bubble” will simply burst as the “dot-com bubble” once burst.
How not to miss a good moment
Despite the skepticism and forecasts of some experts, now you can enter this sector and use the rise in the price of shares of American technology companies to your advantage.
For example, it can be done using the trading platform Libertexwhich provides access to more 300 different assets. Investors who have chosen a trading platform Libertexcan make transactions, in particular, with the following financial instruments:
Shares of the world’s leading companies; Stock indices of different countries of the world; Currencies and cryptocurrencies; other assets.
Important! Trading financial instruments is a risky activity and can bring not only profit, but also losses. The amount of possible losses is limited by the amount of the deposit.
All these tools are available both from a computer, through a web application, and from mobile phones, using applications for iOS and Android. And this means that you can invest and receive income literally anywhere. The main thing is Internet access.
New opportunities for investors in the technology sector / Shutterstock photo
How to take the first steps
To start using financial assets to earn money, you first need to open and fund an account with Libertex. Next, you need to act in the following sequence:
Select the desired tool; Decide on the amount of the transaction; Press the “buy” button if they expect the growth of the asset, and the “sell” option – when they predict the negative dynamics of the selected instrument; Close the deal.
The technical analysis tools offered by the trading platform will help determine the direction of the transaction Libertex. While you can deal with the process of making transactions with a demo account built into the platform. Moreover, it has already been credited 50 thousand virtual dollars. After a few trades on a demo account, you can conveniently switch to a real account.
More 2.9 million beginners and experienced investors are already using the platform Libertex for investment. Join successful investors and take advantage of new opportunities with the Libertex application from the company Forex Club.
2023-09-06 16:16:00
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