Work detail

Fundamental Analysis and Stock Return: The Case of Big Tech

Author: Bc. Thai Nhat Phi Tran Nguyen
Year: 2020 - summer
Leaders: prof. PhDr. Ladislav Krištoufek Ph.D.
Work type: Bachelors
Language: English
Pages: 112
Awards and prizes:
Abstract: Six out of the ten most valuable companies by market capitalisation are, at their core,
technology companies and four of these have at some time crossed the $1 trillion market
cap, which has ignited a public discussion regarding their astronomic valuations and the
tech bubble. This work addresses this development, with the analysis of four companies,
namely Google, Apple, Facebook and Amazon (GAFA), which have dominated their
respective fields of business in the “new economy”. We go beyond the stock analysis and
also examine the company’s fundamentals and their effect on the valuations, furthermore
we fuse the insights of both analyses to offer a more comprehensive evaluation of these four
companies. The results suggest that their stock value accurately portrays their market
dominance and that it is deeply rooted in the companies’ fundamentals which are fairly
well reflected in the stock price movements. Ultimately, we find that these companies
do not contribute to the tech bubble as GAFA show unparalleled financial strength and




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