Tech giants report strong earnings

Tech giants, including Apple, Facebook, Google, and Netflix, have reported strong earnings last week, outperforming expectations despite the ongoing economic downturn. Henry Biddlecombe, Analyst at Anchor Capital, joined CNBC Africa to discuss the performance of the tech sector and the future investment opportunities. Biddlecombe highlighted that the tech sector has thrived not only in terms of share prices but also operationally during the pandemic. With the sudden shift towards remote work and virtual interactions, technology has become essential in our daily lives, leading to a significant rotation of investments into the tech industry. Despite the recent surge in tech stock prices, there are still opportunities for investors to explore undervalued companies within the sector. While the NASDAQ closed at a record high, Biddlecombe emphasized the importance of careful consideration when investing in tech stocks. He suggested that while the tech sector may continue to perform well in the long term, there could be better investment opportunities in industries that have been adversely affected by the crisis. Biddlecombe also addressed Apple's recent decision to undergo a four-for-one stock split, explaining that such actions are typically taken to make shares more accessible to a wider range of investors. Additionally, he discussed the potential risks associated with investing in tech giants like Apple, Facebook, and Google, which have already experienced significant growth. Biddlecombe advised investors to diversify their portfolios and consider investing in sectors that may be currently undervalued, such as cyclical and travel-related businesses. While tech stocks have seen an upward trend in recent months, Biddlecombe suggested adopting a selective approach to tech investments given the uncertainty surrounding the market's future performance. Overall, the tech sector's resilience and forward-thinking approach have positioned tech giants as key players in the market, setting the stage for continued growth and innovation in the years to come.