Amazon Cloud Revenue Miss in the middle of Big Tech Market ‘Concentration’

Amazon (Amzn) shares came under pressure on Thursday after disappointing earnings in the fourth quarter from Alphabet (Goog, Googl) earlier this week.

Brad Klapmeyer, Senior Portfolio Manager at Macquarie’s major growth team, joins market dominance overtime to discuss recent cloud revenue and market dominance of “Magnificent Seven” consisting of alphabet, Apple (AAPL), NVIDIA (NVDA), Tesla (TSLA) , Amazon, Meta Platforms (Meta) and Microsoft (MSFT). He points out that concentrated investor focus on these companies has led to the underpretesty of other solid shares.

“We are all of having large concentrated positions such as efforts in the portfolio,” says Klapmeyer. “What we don’t like is with an index that is forced to these great positions, suddenly we have been exceeded with the most important thematic at the top of Russell 1000 growth.”

“We also want investors to be aware of whether they believe they are investing in a passive, diversified ETF, they can be in the same situation where 55% of their passive, diversified ETF is actually in these large positions, “He adds.

Klapmeyer notes that financial services and payment companies can be good places to invest right now.

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This post was written by Josh Lynch