Varney: American big tech will 'dominate' post-coronavirus economy
'This is a new and different market'
FOX Business’ Stuart Varney, in his latest “My Take,” argues American big tech has "enriched" the U.S. and will "dominate" the post-coronavirus economy.
“Elon Musk is now the seventh richest person in the world. He's worth $70 billion. Tesla is his vehicle to massive wealth,” Varney said. “Jeff Bezos is the richest of them all, with $190 billion, and still rising. That’s Amazon for you!”
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Varney said this is what happens when a small group of technology stocks just keeps going up.
“Amazon, Apple, Microsoft, Google, Facebook, Netflix, and yes, Tesla, have attracted trillions of investment dollars,” he said. “In 50 years, no group of stocks has ever been as dominant as these American big techs. They have enriched our country.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 173.67 | -2.92 | -1.65% |
| AAPL | APPLE INC. | 169.89 | +0.87 | +0.51% |
| MSFT | MICROSOFT CORP. | 399.04 | -10.02 | -2.45% |
| GOOGL | ALPHABET INC. | 156.00 | -3.13 | -1.97% |
| FB | n.a. | n.a. | n.a. | n.a. |
| NFLX | NETFLIX INC. | 564.80 | +9.68 | +1.74% |
| TSLA | TESLA INC. | 170.18 | +8.05 | +4.97% |
Varney said Monday is another "despite it all" day for markets.
“Florida reported a record number of new virus cases -- not good. Corporations are about to report huge profit declines. And tax-hiking Joe Biden is leading in the polls,” he said. “That’s a collection of negatives that should pull stocks down. But we've got another rally!”
Trader Gregory Rowe works on the floor of the New York Stock Exchange, after the Dun & Bradstreet Holdings IPO, Wednesday, July 1, 2020. (Nicole Pereira/NYSE via AP)
Varney wondered, as he has before, what’s going on with the markets.
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“Investors like the Federal Reserve printing trillions of dollars. They like the idea of a new rescue package geared to low-income workers,” he said. “They like a recovering economy. They'd like a vaccine by year-end!”
Varney said investors love big tech as well.
“These companies have little international competition,” he said. “They have enormous amounts of cash on hand and they are the backbone of the emerging high-tech economy.”
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Varney noted that he was not offering a stock market forecast.
“It’s dangerous to make predictions of any kind in 2020,” he said. “It’s a statement of reality. This is a new and different market. It’s based on technology, which will dominate the post virus economy. We should all be happy that these companies are all American.”
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