Yesterday the tech giants were grilled by Congress during a hearing on antitrust issues. Today they smashed earnings expectations. Not even a global pandemic can disrupt these global disruptors.
One of the key issues surrounding the hearing is the idea that these companies are stifling innovation and crushing the competition before they even have a chance to compete.
The chart below is a good way to visualize the dominance. It shows the combined market cap of Apple and Amazon has sped ahead of the Russell 2000.
Apple and Amazon are both up 5% in the after hours, so at the open tomorrow their combined value will be over $1 trillion more than the small cap index.
The bar keeps moving higher and these companies keep jumping over them.
After the bell today, Amazon beat the top line expectations by $8 billion, and Apple reported its highest third quarter revenue ever, growing 11% y/o/y. The fundamentals are justifying their massive growth.
These stocks are the story of the day and of the decade. With nearly 25% of the market in the five giants, where they go, the market will follow.