DeepSeek may have sent markets spiraling on Monday, but by Friday, earnings season made one thing clear: Big Tech still runs the show.
Three of the Magnificent Four — Apple, Meta, and Tesla — saw their stocks climb, despite results that weren’t exactly blow-your-mind good.
Apple’s iPhone sales slipped, but services revenue bailed it out. Meta’s AI play helped distract from a meh sales outlook. Tesla? Well, it did what Tesla does best — revving up the Robotaxi hype machine, again.
The only loser in the pack was Microsoft. Its cloud revenue failed to hit sky-high expectations, proving even the shadow AI king isn’t invincible.
Read more: Tired of DeepSeek and Big Tech? UAE stocks are a chill option
If you thought DeepSeek’s shockwave was the start of something bigger, Goldman Sachs disagrees.
“This is a correction and not the start of a sustained bear market,” strategists led by Peter Oppenheimer said.
Their logic is simple — most bear markets (defined as a 20%+ drop from the peak) happen when profits are expected to tank due to recession fears. And that’s not what’s happening.
If anything, Big Tech’s latest earnings show corporate America is still making money.
Goldman is still confident about growth globally and puts the chance of a US recession in the next year at just 15%. Add in expectations for rate cuts and cooling inflation, and you’ve got a market backdrop that has “historically been supportive of risk assets.”
But that doesn’t mean it’s a green light to pour all your $$$ into Big Tech now. Goldman warns that while these giants have dominated for over a decade, the gap between them and the rest of the market is closing.
They’ll still post solid growth — but maybe not at the runaway pace we’ve seen before.
Their play? Consider the equal-weighted S&P 500 index, which levels the playing field, or the S&P 400, which tracks mid-sized companies. Because while Big Tech is still leading, it’s not the only game in town.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
