Apple, Alphabet Earnings Fuel Megacap Stock Recovery

Earnings reports from the biggest technology companies show that the group is navigating the tough economic environment better than smaller rivals, fueling a rebound in stock prices and encouraging investors about the outlook for the second half.

Results from companies including Inc., Alphabet Inc. and Microsoft Corp. have lifted the Nasdaq 100 Index by 11% in July, adding about $1.5 trillion to its market value and putting it on a pace for its biggest monthly advance since November 2020. Facebook owner Meta Platforms Inc. has been the notable exception.

“The leading companies have been putting up some of the better numbers this season, and their position as secular growth leaders still seems intact,” said Mitch Rubin, chief investment officer at RiverPark Funds. “It has been an incredibly painful road, in terms of sticking it out and owning these names, but I think this quarter marks an important inflection point.”

Here’s a look at the megacap results that came out this week: