Tech Giants Nvidia, Alphabet, and Apple See Remarkable Growth Amidst Economic Concerns and Market Volatility

Silicon Valley, California, USA United States of America
Alphabet Inc. reached new all-time highs at the end of April 2024.
Google accounts for approximately 26% of the digital ad market share.
Nvidia's stock price has gained 53% since April 15, 2024.
The unemployment rate ticked up to 4% in May.
Tech Giants Nvidia, Alphabet, and Apple See Remarkable Growth Amidst Economic Concerns and Market Volatility

In recent weeks, the stock market has seen significant gains, with some companies experiencing remarkable growth. Among them are Nvidia (NVDA), Alphabet Inc. (GOOGL), and Apple (AAPL). However, a closer look at the data reveals that these gains may not be as sustainable as they seem.

Nvidia's stock price has gained 53% since April 15, 2024. According to technical analysis, the company's relative strength index (RSI) is at 80, suggesting the stock is overbought and could take a dive soon. This trend is not unique to Nvidia; Eli Lilly (LLY), Apple, Costco Wholesale, and Arm Holdings also have RSIs above 78.

Meanwhile, Alphabet Inc. reached new all-time highs at the end of April 2024. Google is a dominant player in the digital ad market, accounting for approximately 26% of market share. Digital ad sales for Google hit $61.66 billion in Q1 2024, up from $54.55 billion in the same quarter last year.

However, these gains come amidst broader economic concerns. The unemployment rate ticked up to 4% and the labor force shrank by 250k in May. The number of full-time employees shrunk by 625k while part-time workers increased by 286k in the past year.

Despite these concerns, some market observers remain optimistic about the continued growth of tech giants like Nvidia, Alphabet, and Apple. However, it is important to remember that stock prices can be influenced by a variety of factors beyond fundamental business performance. As such, investors should approach these stocks with caution and consider diversifying their portfolios.

It is also worth noting that the market as a whole has been experiencing unusual volatility in recent months. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all seen significant swings in value. This volatility can make it difficult for investors to make informed decisions based on short-term trends alone.

In conclusion, while the recent gains in tech stocks like Nvidia, Alphabet, and Apple are impressive, they come amidst broader economic concerns and unusual market volatility. Investors should approach these stocks with caution and consider diversifying their portfolios to mitigate risk.


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Confidence

90%

Doubts
  • How sustainable are the recent gains in tech stocks like Nvidia, Alphabet, and Apple?

Sources

87%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nvidia's shares flashes key warning sign

Yahoo Finance Charley Blaine Monday, 17 June 2024 10:43
  • Unique Points
    • Nvidia's stock price has gained 53% since April 15, 2024
    • Nvidia’s RSI is at 80, suggesting the stock is overbought and could take a dive soon
    • Eli Lilly’s RSI level is 78, Apple’s RSI level is 78.9, Costco Wholesale’s RSI level is 78.4 and Arm Holdings’ RSI level is 80
  • Accuracy
    • Nvidia's RSI is at 80, suggesting the stock is overbought and could take a dive soon
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The author uses an appeal to authority fallacy by stating that 'Many investors care about RSI and other technical indicators because they offer signals on when to buy, when to sell and when to start the decision process.' This statement implies that because many investors use RSI, it is a reliable indicator. However, this does not make it true. Additionally, the author makes a hasty generalization by stating that 'An RSI above 70 means a stock is vulnerable.' While an RSI above 70 may suggest that a stock is overbought and due for a pullback, it does not guarantee that this will happen. The author also uses inflammatory rhetoric by stating that 'The reverse is also true. If a stock is slumping, reaching the 30 level is a signal a bottom is coming.' This statement implies that if an investor sees an RSI below 30, they should buy the stock without considering other factors.
    • ]Many investors care about RSI and other technical indicators because they offer signals on when to buy, when to sell and when to start the decision process.[
    • An RSI above 70 means a stock is vulnerable.
    • The reverse is also true. If a stock is slumping, reaching the 30 level is a signal a bottom is coming.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

71%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nvidia Is Hiding The Cracks Beneath The Stock Market Surface

Seeking Alpha Investment Community Mott Capital Sunday, 16 June 2024 10:15
  • Unique Points
    • Nvidia's overwhelming influence on the market is masking underlying weakness, potentially leading to a costly mistake.
    • Since May 17, Nvidia has accounted for 81.1% of the gains in the Bloomberg 500 and that 156 stocks have moved up while 345 have moved lower.
    • The market cap weight indexes are likely being distorted by just a handful of names, much more so than in the past, and at this point, it would seem that much of that distortion is due to just one stock.
  • Accuracy
    • Blended 12-month earnings growth is expected to be 12.3%.
    • The indexes with Nvidia give a false sense of comfort and belief that the equity markets are strong.
  • Deception (30%)
    The article makes several statements that are emotionally manipulative and sensational. The author uses phrases like 'costly mistake', 'masking underlying weakness', and 'potentially leading to a costly mistake down the road' to create fear in the reader. They also use phrases like 'false sense of comfort' and 'narrowing of the breadth has been a theme for not weeks but months' to create a sense of urgency. The author also uses selective reporting by focusing on Nvidia and ignoring other factors that may be contributing to market performance.
    • Paying More But Getting Less What is also extremely odd about this market is that...
    • The indexes that either have Nvidia as equal weight or are absent altogether have struggled since peaking in March, while market cap-weighted indexes with Nvidia have made new highs.
    • , what's worse is that the true nature of the market will take over again. For now, even if something changes beneath the surface in the market, the S&P 500 and the NASDAQ 100 mask that weakness because Nvidia can essentially cover that weakness up.
  • Fallacies (75%)
    The article by Mott Capital Management contains several logical fallacies. The first fallacy is an appeal to authority, where the author cites their own analysis and opinion as evidence of the market's weakness. This is a fallacy because the author's analysis and opinion do not necessarily reflect objective reality. The second fallacy is dichotomous depiction, where the author frames the market as having only two possible outcomes: strong with Nvidia or weak without it. This oversimplifies the complexity of the market and ignores other factors that may be contributing to its weakness or strength. The third fallacy is inflammatory rhetoric, where the author uses language that is intended to provoke an emotional response rather than present a balanced argument. For example, the author describes Nvidia as 'overwhelming' the market and causing a 'costly mistake' for those who do not assess risk correctly.
    • The indexes with Nvidia give a false sense of comfort and belief that the equity markets are strong
    • Nvidia has wholly overwhelmed the market
    • the true nature of the market will take over again. For now, even if something changes beneath the surface in the market, the S&P 500 and the NASDAQ 100 mask that weakness because Nvidia can essentially cover that weakness up
  • Bias (80%)
    The author expresses a bias towards the stock market and specifically calls out Nvidia's influence on it, implying that its dominance is masking underlying weakness. The author also uses language that depicts the market without Nvidia as struggling and weakening.
    • Nvidia’s overwhelming influence on the market is masking underlying weakness, potentially leading to a costly mistake.
      • The indexes with Nvidia give a false sense of comfort and belief that the equity markets are strong, and for those who do not assess the risk correctly, it could be a costly mistake down the road.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      86%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Alphabet Hits All-Time Highs. Place Your Bets…

      ETFTrends.com Unknown Direxion Wednesday, 12 June 2024 12:00
      • Unique Points
        • Alphabet Inc. (GOOGL) reached new all-time highs at the end of April 2024.
        • Google is a dominant player in the digital ad market, accounting for approximately 26% of market share.
        • Digital ad sales for Google hit $61.66 billion in Q1 2024, up from $54.55 billion in the same quarter last year.
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (50%)
        The article contains editorializing and selective reporting. The author expresses their opinion on the potential performance of Alphabet Inc. (GOOGL) by discussing bullish and bearish arguments, implying a bias towards the stock's potential growth. They also selectively report information that supports their argument, such as Google's dominance in digital ad revenue and its investment in AI technology.
        • There are compelling arguments on both sides of the trade.
        • Bears have some ammunition too, though.
        • Digital Dominance: GOOGL is a giant in the digital ad revenue world. It accounts for roughly 26% of the market, according to Statista.
        • Every investor knows the mantra: buy low, sell high. But traders often see things differently.
      • Fallacies (85%)
        The article contains several informal fallacies and appeals to authority. The author uses the phrase 'every investor knows' which is an appeal to common knowledge fallacy. They also use the phrase 'plenty of catalysts' which is a vague and unspecific statement that can be interpreted in many ways, making it an example of ambiguity fallacy. The author also states that 'Google may be the leader now, but the company has warned that Amazon is catching up in this department.' This statement is an appeal to authority as it relies on a warning from the company without providing any evidence or context. Additionally, there are several instances of inflammatory rhetoric such as 'nasty one-two punch' and 'tailspin', which can be considered emotional appeals.
        • Every investor knows the mantra: buy low, sell high.
        • Plenty of catalysts that could send the stock climbing, even from these lofty levels.
        • Google may be the leader now, but the company has warned that Amazon is catching up in this department.
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      55%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      When will the boom/bust rollercoaster end?

      Kitco News Monday, 17 June 2024 10:51
      • Unique Points
        • NVDA has added the equivalent of Berkshire Hathaway (BRK)'s valuation in 6 weeks.
        • The unemployment rate ticked up to 4% and labor force shrank by 250k in May.
        • The number of full-time employees shrunk by 625k while part-time workers increased by 286k in the past year.
      • Accuracy
        • NVIDIA (NVDA) has gained 155% year to date and its market cap is over $3 trillion.
        • NVIDIA is responsible for more than half of the S&P 500 gains this year.
      • Deception (30%)
        The article makes several assertions without providing any concrete evidence to support them. The author claims that NVIDIA's stock is in a bubble and that the Non-Farm Payroll report is a farce, but does not provide any data or studies to back up these claims. The author also makes predictions about the economy and the Fed's actions, but again, offers no evidence to support these predictions. Additionally, the article contains emotional manipulation by implying that those who seek the truth about the US economy will be disappointed and that a recession is a good thing because it resets asset prices. Lastly, there is selective reporting as the author only focuses on data that supports their argument and ignores contradictory data.
        • Despite a deluge of labor market data that clearly shows that hiring is slowing down significantly, such as the job openings and labor turnover survey (JOLTS) at a 3-year low, negative labor market index in the ISM services sector, rising initial jobless claims, and a parade of public companies announcing layoffs and hiring freezes, the BLS came up with a headline number of 277k net new jobs hired in May.
        • NVIDIA has gained the equivalent of Amazon in just six months.
        • NVDA is now worth over 10% of US GDP.
        • The truth is the Fed has saddled the US economy into an endless rollercoaster of boom/bust cycles.
        • All previous stock market bubbles share the following in common: a narrow stock market rally that focuses on a small group of stocks in a small sector of the economy that Wall Street is working overtime on promoting. AI fits this profile perfectly.
      • Fallacies (75%)
        The article contains a few informal fallacies and appeals to authority. It also presents a dichotomous depiction of the labor market situation. No formal logical fallacies were found.
        • . . . NVDA is now in a bubble.
        • The stock is predicated on spurious and ephemeral demand for its chips, which will collapse in the economic downturn ahead.
        • The truth is the Fed has saddled the US economy into an endless rollercoaster of boom/bust cycles.
      • Bias (10%)
        The author expresses a clear bias against the US economy and the Federal Reserve. They argue that the Non-Farm Payroll report is a 'farce' and that the Fed is responsible for creating an endless cycle of boom and bust in the economy. The author also expresses a strong belief in gold as an investment during economic downturns.
        • Hence, the Fed's hands are tied regarding rate cuts for at least the next few months.
          • However, Powell and the FOMC now predict that the rate-cutting regime will begin with just one cut in 2024.
            • Look for China’s pause on gold buying to end soon and for investors to pile in once the US economic headline labor data begins to weaken.
              • The Non-Farm Payroll (NFP) report has become a farce.
              • Site Conflicts Of Interest (100%)
                None Found At Time Of Publication
              • Author Conflicts Of Interest (0%)
                None Found At Time Of Publication