Tuesday, 6 February 2024 Reading time : 2 minutes

The US tech titans have once again caused a stir on Wall Street in recent days. At the end of the week, the spotlight was on Facebook parent Meta Platforms and Amazon, which both posted strong quarterly results. Equities in Meta Platforms soared more than 20% on Friday, while Amazon's shares climbed 7.9%. The gains pushed US stock markets to new record highs with the Nasdaq 100 technology index ending the week at a new all-time high of 17,642.73.

The two mega-caps are part of the «Magnificent Seven» currently dominating the US stock market. The group includes Apple, Microsoft and Alphabet, which also reported results last week. Despite beating earnings and revenue forecasts, some of their shares suffered setbacks after investors identified weaknesses in the respective quarterly reports. iPhone maker Apple, for example, reported a decline in sales in China, one of its most important markets. Alphabet's online advertising revenue was slightly below forecasts and Microsoft's outlook was in-line with expectations.

The development shows that after last year's rally, there is little room for error for the tech titans. The focus now shifts to US chipmaker Nvidia, which is due to report on 21 February. Even in the context of the «Magnificent Seven», Nvidia's shares are a league of their own: they have risen by a whopping 240% in 2023, putting Meta in second place (+194%). Electric car manufacturer Tesla, the seventh in the group, published its quarterly results in January, but failed to meet expectations.

Callable Barrier Reverse Convertible on US Big Tech
The Callable Barrier Reverse Convertible on Amazon, Apple, Microsoft, Alphabet, Meta offers partial protection against price setbacks and a guaranteed coupon of 14% per year.

Reverse Convertibles on individual Big Tech companies
If investors expect the share price to move sideways, Reverse Convertibles on individual names offer an investment opportunity.

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8.30% p.a. Reverse Convertible on Alphabet

9.00% p.a. Reverse Convertible on Amazon

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Indicative terms

 

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