For a lot of people, BlackRock brings two things to mind: fixed income and ETFs. Therefore, the firm making a bold call about a handful of single name stocks comes as somewhat of a surprise. However, BlackRock is the largest asset manager in the world and is also a leader in equities. The call they are making today is that big tech companies are looking strong and likely to keep seeing price expansion. On the one hand, this is a very easy call to make given tech stocks have been soaring, but on the other, it is somewhat of an interesting and risky call because many fear FAANGs can really only go down in the short-term. BlackRock says that the cash flow producing abilities of tech companies (a factor proven to be vital in this downturn) will be critical to their continued success.
FINSUM: There might be some short-term tailwinds, but in our view, big tech companies are going to keep moving higher because this crisis has created a huge opportunity to grab market share as more of life moves online.