From Nasdaq: 2025-05-06 08:42:00

Big Tech stocks suffered at the start of 2025, with trade tensions and low-cost AI companies impacting performance. Invesco QQQ Trust (QQQ) is down 4.8% YTD, while Technology Select Sector SPDR Fund (XLK) has lost 7.1% as of May 5, 2025. Despite this, tech stocks are showing resilience, with XLK up 17.4% and QQQ up 14.7% in the past month.

Earnings reports show Big Tech companies are outperforming the S&P 500, with the “Magnificent Seven” beating estimates by 16%. AI remains a focus despite a February pullback, leading to renewed tech sector investments. Capital spending by tech giants like Alphabet and Microsoft has remained strong, signaling long-term confidence.

Despite trade tensions, Big Tech firms are continuing with aggressive investment plans, showcasing their conviction. Concerns remain, such as Amazon’s slowing growth due to capacity limitations. However, their revenue outlook meets estimates, highlighting adaptability. ETFs like Roundhill Magnificent Seven ETF (MAGS) and MicroSectors FANG+ ETN (FNGS) offer exposure to these stocks.

Investors may find investing in Big Tech through ETFs a viable option given the current market conditions. ETFs like Vanguard Mega Cap Growth ETF (MGK) and Invesco S&P 500 Top 50 ETF (XLG) provide exposure to top tech companies. Despite challenges, Big Tech ETFs remain a solid investment choice in the current market landscape.



Read more at Nasdaq: Why Big Tech ETFs Still Remain Great Bets