Investors shifting to small-cap stocks like AMPY, GLDD, and TREE for potential growth

From Nasdaq: 2024-07-22 14:45:00

Investors are shifting focus from mega-cap tech companies to smaller domestic firms amidst interest rate cut prospects. Billionaire Stanley Druckenmiller is betting on growth-oriented small-cap stocks like Amplify Energy Corp. (AMPY), Great Lakes Dredge & Dock Corporation (GLDD), and LendingTree, Inc. (TREE) for potential stellar returns.

Market participants are moving away from tech giants like NVIDIA, Alphabet, and Apple due to stretched valuations and AI-driven price inflation concerns. Interest rate cuts have sparked a rally among small-cap stocks, with potential for further gains. The upcoming Fed rate cut may benefit small caps more than large caps due to balance sheet dynamics.

Billionaire investor Stanley Druckenmiller has raised stakes in small-cap companies like iShares Russell 2000 ETF (IWM), signaling optimism about a potential small-cap rally. Retail investors and billionaires alike are showing interest in small-cap growth stocks like Amplify Energy, Great Lakes Dredge & Dock, and LendingTree, all of which have strong growth potential and impressive year-to-date gains.



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