It looks like Big Tech stocks are big Inauguration Day winners. Despite widespread investor fears, leading tech names including Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) are on the move today. In fact, these major moves led the Nasdaq Composite to hit a new all-time high! So what else do you need to know about the Nasdaq news today?
To start, investors should know that it is not every day that GOOG and GOOGL shares are up 5%. In fact, in recent weeks, Alphabet and its peers have struggled. We have watched what many have called a rotation out of Big Tech and into other equities. The move has made sense, especially after investors relied on mega-cap tech names to navigate the early days of the pandemic.
However, fear over the future of Silicon Valley has only gotten louder in recent weeks.
On one side, many investors are worried about what Biden and a Democrat-controlled Congress will mean for Big Tech. Analysts largely think Democrats will support antitrust action against these companies, leading names like Amazon and Alphabet to break up. Additionally, Democratic lawmakers are more likely to pass legislation restricting the use of personal data and legislation that regulates these companies as digital utilities.
On the other side, investors are worried about Silicon Valley in the aftermath of chaos at the U.S. Capitol. When tech companies moved to de-platform former President Donald Trump and his supporters, their stocks sunk. At the heart of that panic is uncertainty. Will companies like Twitter (NYSE:TWTR) and Facebook lose a meaningful amount of customers as a result?
Big Tech Stocks and Today’s Nasdaq News
Considering all of the risks facing the tech world, the Nasdaq news may be surprising. However, what it shows is that Biden may not be all that bad for the stock market. Many experts agree, and it seems that Biden is ushering in a rally of his own. Plus, with plans for a $1.9 trillion stimulus package, the economy could soon be roaring again.
So with Big Tech stocks setting new all-time highs today, what else do you need to know?
Some investors see today as the start of a rotation back into FAANG stocks. Others see it as a pre-earnings rally. Consider that NFLX stock is up 16% after beating analyst estimates for subscriber growth and revenue today. Amazon and Alphabet report earnings Feb. 2. Facebook and Apple report earnings Jan. 27. Hopes are high that these companies will find themselves in the same position that Netflix is in today.
And lastly, how should you proceed? As InvestorPlace analyst Luke Lango shared last week, these tech companies are household names with loyal followings. It will take more than de-platforming Trump or political headwinds to shake them.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
View more information: https://investorplace.com/2021/01/nasdaq-news-big-tech-stocks-faang-amzn-nflx-stock-climbing-today/