Last night, in a matter of minutes, we saw $500 billion added to the market.
Microsoft (MSFT) reported earnings after the close yesterday. Immediately after the release, the stock was up more than 8% in after-hours trading.
That’s $300 billion added to what’s already the second-largest company in the world.
If that wasn’t enough, Meta Platforms (META), the artist formerly known as Facebook, rallied more than 12% after hours, the equivalent of $200 billion in market cap.
In just a few minutes, two companies alone added more than $500 billion in value to the market.
Literally minutes…
Microsoft Hits $4 Trillion
Microsoft is already one of the biggest winners of this entire bull market, and it’s also one of the leaders during this historic rally off the Spring lows.
Good news comes in the direction of the underlying trend. That’s how I learned it.
Here’s another example. I don’t know what Microsoft said, or what was so special about its earnings. That’s not anything we care about around here.
All I know is it was enough to rally the stock up another $300 billion to a new all-time high:
It was also enough to make Microsoft the second company in history to reach a $4 trillion market-cap.
What’s another few hundred billion among friends?
For perspective, this $300 billion dollars Microsoft added to its value in just a few minutes is more than the market cap of 475 of the companies in the S&P 500.
Meta Approaches $2 Trillion
Meanwhile, a few minutes after MSFT ripped in the after-hours market last night, Meta Platforms reported its numbers, and the stock exploded higher – up 12% in just a few minutes.
That’s another $200 billion in market-cap and another new all-time high:
It puts META close to that $2 trillion market-cap threshold, something only a handful of companies have ever been able to top.
The world’s biggest companies hitting new all-time highs and creating hundreds of billions of dollars in profits for their shareholders in a matter of minutes is not something you see in bear markets.
These are the types of moves you see in risk-on environments.
The offense is on the field. We want to be calling our offensive plays.
And that’s what we’re doing.
Asset managers are underexposed to this market. We know – we have the data.
They’ve been wrong. They’re still wrong.
And, until they correct that, the path of least resistance for stocks remains higher.
I’ve gone back and done the work. During bull markets, investors who own stocks make a lot more money than investors who do not own stocks.
Go back and see for yourself. You’ll notice the same thing.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs