- During the most recent earnings season, both Apple and Alphabet stocks side-stepped the deep sell-offs many other technology companies experienced.
- Investors should not expect this trend to continue over the medium-term.
- Because of a reversal of federal stimulus policy, earnings trends from 2020 and 2021 are likely to reverse for these businesses as well.
- These are great businesses, but they are dependent on a strong consumer and advertising. Over the next two years, both of these are likely to decline.
- The odds are very high that the market will react poorly to negative earnings growth by the end of 2023, and send these into a bear market with the rest of the pandemic "boom" stocks.
For further details see:
Apple & Alphabet Will Not Side-Step A Deep Bear Market