XLK Stock Recent News

XLK ETF has potential for further growth, with Apple's announcement of iOS 18 potentially leading to a new rally. Short-term pullback is probable due to stretched sentiment, extreme positioning in call options, possible government shutdown, and potential collapse of New York Community Bancorp. The Fed pivot may happen sooner rather than later.

The XLK fund has outperformed benchmark indices due to excitement in AI and strong performance from semiconductors and tech stocks. The fund tracks the Technology Select Sector Index, excluding stocks in the Communication Services sector. Q4 FY23 earnings beat expectations, but Q1 guidance was subdued. Valuation levels are getting stretched, suggesting a potential pullback in the market.

Apple Inc. AAPL has decided to cancel its ambitious project to build an electric car, marking the end of a decade-long effort that aimed to revolutionize the automotive industry. The decision was disclosed internally on Feb 27, 2024, surprising the nearly 2,000 employees dedicated to the project, per Bloomberg.

Even if you have not heard of the Magnificent Seven stocks as a group, you likely know the companies.   The Magnificent Seven comprises Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN), Nvidia (NVDA), Meta Platforms (META), Tesla (TSLA), and Alphabet (GOOG/GOOGL).

In the fourth quarter of 2023, Warren Buffett's Berkshire Hathaway trimmed Apple's shares from its portfolio.

Apple returned to quarterly sales growth after four straight quarters of declines. However, a decline in China sales pulled down the stock.

Apple has reasonable chances to beat earnings estimates and saw a positive earnings estimate revision activity, which is generally a precursor to an earnings beat.

This week is packed with more than 100 corporate earnings, a Federal Reserve policy meeting and the job report data that may dictate the next moves for the stock market's rally.

The Technology Select Sector ETF has appreciated by over 20% since my last bullish publication and now trades at a little over $200. This time, my positive forecast on the tech ETF is based on top-holding Microsoft and other software plays likely to benefit from AI moving towards the exploitation or usage phase. XLK is undervalued compared to Microsoft and Nvidia, presenting a potential target price of roughly $223.

Tech stocks have outpaced all other S&P 500 sectors in the past three months as AI fervor continues to permeate markets. The Technology Select Sector SPDR Fund ETF could feature some volatility due to upcoming mega-cap tech earnings this week. XLK has a concentrated portfolio, with over 40% of the fund invested in Microsoft and Apple, and seasonal trends turn a bit softer over the coming weeks.