RiverNorth/DoubleLine Strategic Opportunity Fund
Change company Symbol lookup
Select an option...
OPP RiverNorth/DoubleLine Strategic Opportunity Fund
IFF International Flavors & Fragrances Inc
PNM PNM Resources Inc
ALB Albemarle Corp
AMBC Ambac Financial Group Inc
ASUR Asure Software Inc
MRK Merck & Co Inc
AMR Alpha Metallurgical Resources Inc
AAL American Airlines Group Inc
ADMS Adamas Pharmaceuticals Inc
Go

Closing Price
$15.50
Day's Change
0.11 (0.71%)
Bid
--
Ask
--
B/A Size
--
Day's High
15.63
Day's Low
15.40
Volume
(Heavy Day)
Volume:
208,983

10-day average volume:
133,086
208,983

This chart shows the deluge of corporate spending on technology since 1980

2:56 pm ET April 20, 2021 (MarketWatch)
Print

By Joy Wiltermuth

Apple's cloud, digital and payment group is big business too

Think big tech stocks are too toppy?

Lately, it has been a near daily tug of war when it comes to whether the lofty share prices of highflying technology companies can be justified, particularly as benchmark bond yields rise from pandemic lows and a greater share of the U.S. population gets vaccinated against COVID-19 (https://www.marketwatch.com/story/global-tally-of-covid-19-cases-top-142-million-as-indias-surging-cases-raise-the-alarm-11618929916?mod=mw_latestnews), spurring hope for a robust economic recovery.

The technology-heavy Nasdaq Composite Index was down 1.2% Tuesday afternoon (https://www.marketwatch.com/story/stock-futures-edge-lower-as-investors-brace-for-earnings-deluge-11618918757?mod=market-snapshot), while the S&P 500 index and blue-chip Dow Jones Industrial Average were down less than 1%.

Shares of Apple, Inc. (AAPL), the world's largest company when measured by market capitalization, were down about 1.4%.

But as investors embrace an on-again, off-again love affair with tech stocks, it may be worthwhile to look at how much big companies, not just individuals, have been spending at tech giants like Apple, Amazon.com Inc. (AMZN), Google parent Alphabet Inc. (GOOGL), Microsoft Corp.(MSFT) and Salesforce.com Inc. (CRM) in recent decades.

Consider this chart from Wells Fargo Investment Institute, which shows about half of all corporate capital expenditures flowed toward technology in 2020, up from only 24% in 1980.

As MarketWatch's Philip van Doorn points out, Apple's Services category, including cloud storage and backup, digital content and payment services, has growing rapidly to become its second-largest reported business category (https://www.marketwatch.com/story/apple-stock-update-the-key-numbers-you-need-to-look-at-now-11618847817?mod=mw_more_headlines).

Analysts at the Wells Fargo Investment Institute pointed to the tumult sparked by the pandemic and the Federal Reserves's quick action in slashing benchmark interest rates to near zero as partial reasons for last year's record share of corporate cash flowing into technology.

"This allowed many firms to borrow low-cost capital and employ debt in an effort to accelerate growth," the team wrote in a Tuesday note.

Related: Get ready for stock buybacks to roar back (https://www.marketwatch.com/story/get-ready-for-stock-buybacks-to-roar-back-11618599516)

But the team also pointed to a broader shift over the past four decades in how companies do their work and stay competitive.

"We believe capital expenditures are at an inflection point, with technology spending poised to eclipse hard machinery spending for the first time in history," the team wrote. "We remain favorable on the Information Technology sector."

Also see: Should you buy Apple stock? Here are the key numbers to look at now (https://www.marketwatch.com/story/apple-stock-update-the-key-numbers-you-need-to-look-at-now-11618847817?mod=mw_more_headlines)

Read next: The FAANG stocks, in these uncertain times, are expected to rise as much as 35% over the next year (https://www.marketwatch.com/story/the-faangs-in-an-uncertain-year-for-the-stock-market-are-set-to-post-scorching-sales-growth-11615224140)

-Joy Wiltermuth; 415-439-6400; AskNewswires@dowjones.com

	

(END) Dow Jones Newswires

April 20, 2021 14:56 ET (18:56 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

Earnings Calendar and Events Data provided by |Terms of Use| © 2021 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., , and

Copyright © 2021. All rights reserved.