Tech titans had a dismal week, buoyed by weak earnings results and a disappointing outlook. The so-called “GAMMA” stocks — Alphabet GOOGL, Apple AAPL, Microsoft MSFT, Meta Platforms META, and Amazon AMZN — collectively shed about $350 billion in market value last week.
Amid the sell-off, a few ETFs gained handsomely last week, surviving the rout. These include Global X Blockchain ETF BKCH, VanEck Vectors Digital Transformation ETF DAPP, iShares North American Tech-Multimedia Networking ETF IGN, ARK Next Generation Internet ETF ARKW, and ARK Innovation ETF ARKK.
Earnings Impact
Microsoft and Alphabet lost about $280 billion in combined market value post their earnings results, while Meta Plarform had its worst week since the company’s IPO in 2012, plunging 24% over the past five days. Microsoft posted its weakest quarterly revenue growth in five years and issued downbeat second-quarter revenues on slowing computer sales. Google’s parent company Alphabet missed both revenue and earnings estimates due to slowing ad sales growth (read: Alphabet Slips on Q3 Earnings Miss: ETFs in Focus).
The social media giant reported its second consecutive quarterly drop in revenues and provided a gloomy forecast given the broader fallout in digital advertisement. Meanwhile, Amazon’s market value sank by $170 billion, pushing its market capitalization below $1 trillion after the worst forecast for holiday-quarter growth in its history.
However, Apple bucked the trend and added $178 billion to its market value after better-than-expected fourth-quarter results. The stock was up 7.6%, leaving the iPhone maker worth $2.5 trillion in value.
Including Netflix NFLX and Tesla TSLA, the seven tech titans erased about $3 trillion in their market cap from a year-to-date-look. After two straight quarters of subscriber losses, the world’s largest video streaming company returned to growth, which marks a major turnaround that has been plagued by declining growth during the past year. Tesla posted record revenues but still missed the estimates as it delivered fewer vehicles than expected (read: Tesla Revenues Miss in Q3 Earnings Put These ETFs in Focus).
Out of the seven, Apple is still the bright stock, losing a meager $35 billion, while Alphabet is the biggest laggard, shedding nearly $698 billion this year.
Global X Blockchain ETF (BKCH) – Up 14.4%
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 24 stocks in its basket with a double-digit allocation to the three top firms.
Global X Blockchain ETF has gathered $69.5 million in its asset base and trades in an average daily volume of 113,000 shares. It charges 50 bps in annual fees.
VanEck Vectors Digital Transformation ETF (DAPP) – Up 11.1%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of the digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 25 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 79,000. DAPP has accumulated $31 million in its asset base.
iShares North American Tech-Multimedia Networking ETF (IGN) – Up 9%
iShares North American Tech-Multimedia Networking ETF provides exposure to telecom equipment, data networking and wireless equipment companies by tracking the S&P North American Technology-Multimedia Networking Index. It holds 21 securities in its basket (read: Least-Hurt Top-Ranked Tech ETFs You May Consider Now).
iShares North American Tech-Multimedia Networking ETF has accumulated $109.3 million in its asset base and sees a light volume of around 11,000 shares a day. IGN charges 40 bps in annual fees and carries a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
ARK Next Generation Internet ETF (ARKW) – Up 7.5%
ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 31 stocks in its basket, with none accounting for more than 8.2% of the assets.
ARK Next Generation Internet ETF has amassed $1.2 billion in its asset base and charges 83 bps in annual fees. It trades in an average daily volume of 891,000 shares.
ARK Innovation ETF (ARKK) – Up 7.4%
ARK Innovation ETF is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research. In total, the fund holds 32 securities in its basket, with none accounting for more than 9.3% of the assets.
ARK Innovation ETF has gathered $7.6 billion in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 23.6 million shares per day on average.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
ARK Next Generation Internet ETF (ARKW): ETF Research Reports
ARK Innovation ETF (ARKK): ETF Research Reports
iShares North American TechMultimedia Networking ETF (IGN): ETF Research Reports
Global X Blockchain ETF (BKCH): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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