{"id":63130,"date":"2025-02-04T16:20:27","date_gmt":"2025-02-04T21:20:27","guid":{"rendered":"https:\/\/www.tradestation.com\/insights\/?p=63130"},"modified":"2025-02-04T16:28:14","modified_gmt":"2025-02-04T21:28:14","slug":"smaller-names-break-out","status":"publish","type":"post","link":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/","title":{"rendered":"Tech: Smaller Names Break Out as the &#8216;Big 3&#8217; Lag"},"content":{"rendered":"<p>Technology is the worst-performing sector this year. A lot of the weakness is at the top, but some smaller names are breaking out.<\/p>\n<p>Apple (AAPL), Nvidia (NVDA) and Microsoft (MSFT) are the three biggest technology stocks, accounting for more than 40 percent of the sector&#8217;s weighting. They&#8217;ve declined an average 7 percent so far this year, according to TradeStation data. That contrasts with an average gain of 4 percent for the other 66 stocks in the group.<\/p>\n<p>Each of the &#8220;Big Three&#8221; has faced challenges:<\/p>\n<ul>\n<li>AAPL has lost market share in its key Chinese market and is showing only tepid signs of benefiting from an iPhone upgrade cycle.<\/li>\n<li>MSFT&#8217;s key Azure business missed growth estimates last quarter. It had already guided the number down in October and struggled with slowness in July.<\/li>\n<li>NVDA plunged on January 27 after China&#8217;s DeepSeek AI model caused investors to question optimistic assumptions about demand for AI hardware over the long run.<\/li>\n<\/ul>\n<p>These issues may impact the main growth drivers of all three companies. They&#8217;re also the biggest in the world by market capitalization, which may suggest they&#8217;re widely owned. Are investors lightening those positions and looking for opportunities in other companies? Price action may suggest they are.<\/p>\n<p>Here are some of the recent outperformers, according to TradeStation Data.<\/p>\n<div id=\"attachment_63155\" style=\"width: 1034px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-63155\" class=\"wp-image-63155 size-large\" src=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/PLTR_20250204a-1024x494.jpg\" alt=\"\" width=\"1024\" height=\"494\" srcset=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/PLTR_20250204a-1024x494.jpg 1024w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/PLTR_20250204a-300x145.jpg 300w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/PLTR_20250204a-768x370.jpg 768w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/PLTR_20250204a-1536x741.jpg 1536w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/PLTR_20250204a-1080x521.jpg 1080w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/PLTR_20250204a.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-63155\" class=\"wp-caption-text\"><em>Palantir Technologies (PLTR), daily chart, with select patterns and indicators.<\/em><\/p><\/div>\n<h2>Palantir, Atlassian<\/h2>\n<p>Palantir (PLTR) jumped to a new all-time high on Tuesday after earnings, revenue and guidance beat estimates. The software company got started with government customers focused on national security and counterterrorism. It&#8217;s achieving its recent growth by expanding into the larger corporate enterprise market.<\/p>\n<p>Atlassian (TEAM) jumped to a three-year high last Friday after earnings and revenue beat estimates. The AI boom is fueling demand for its Jira project-management software and its AI-powered assistant Rovo.<\/p>\n<h2>CrowdStrike, Fortinet<\/h2>\n<p>Next come a pair of cybersecurity firms.<\/p>\n<p>CrowdStrike (CRWD) plunged in July after an update caused widespread outages, but has clawed back since. It jumped to a new record high last week after announcing its Falcon platform achieved a perfect score on the SE Labs Enterprise Advanced Security Ransomware Test.<\/p>\n<div id=\"attachment_63153\" style=\"width: 510px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-63153\" class=\"wp-image-63153\" src=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/big-3-rs-20250204a.jpg\" alt=\"\" width=\"500\" height=\"285\" srcset=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/big-3-rs-20250204a.jpg 626w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/big-3-rs-20250204a-300x171.jpg 300w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><p id=\"caption-attachment-63153\" class=\"wp-caption-text\"><em>RadarScreen\u00ae showing year-to-date (YTD) performances of select symbols.<\/em><\/p><\/div>\n<p>Fortinet (FTNT) hit a new all-time high last week after rallying on its last two earnings reports. Its next set of numbers is due Thursday afternoon.<\/p>\n<h2>KeySight, Cognizant<\/h2>\n<p>KeySight Technologies (KEYS), whose equipment is used to test and optimize communication networks, is the only hardware company in this article. It issued better-than-expected earnings, revenue and guidance in November, partially because of AI-related spending. The stock paused in December and early January, but ended last week at its highest level in almost three years.\u00a0KEYS reports earnings after the closing bell on February 25.<\/p>\n<p>Cognizant Technology Solutions (CTSH) is an IT-outsourcing company with major Indian operations. The stock rallied on strong results in late October followed by a period of chopping. It closed Tuesday at the highest level since May 2022. CTSH has announced several AI products and projects, including expanded contracts for major companies like McDonald&#8217;s (MCD) and Gilead Sciences (GILD).<\/p>\n<p>In conclusion, some strategists have warned about overconcentration in megacap growth stocks. The early weeks of 2025 have shown apparent weakness in the biggest names despite strength in the broader technology sector. Given the potential for other names to gain attention as the year progresses, some investors may start following smaller companies. (That&#8217;s why we focused on short-term performance and potential near-term catalysts like AI spending.) Keep reading Market Insights and watching Market Trends for more changes happening in the New Year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technology is the worst-performing sector this year. A lot of the weakness is at the top, but some smaller names are breaking out. Apple (AAPL), Nvidia (NVDA) and Microsoft (MSFT) are the three biggest technology stocks, accounting for more than 40 percent of the sector&#8217;s weighting. They&#8217;ve declined an average 7 percent so far this [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":63139,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[13,30],"tags":[115,958,427,688,865,128,181,1074,946],"class_list":["post-63130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stocks","category-technology","tag-aapl","tag-crwd","tag-ctsh","tag-ftnt","tag-keys","tag-msft","tag-nvda","tag-pltr","tag-team","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tech: Smaller Names Break Out as the &#039;Big 3&#039; Lag<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tech: Smaller Names Break Out as the &#039;Big 3&#039; Lag\" \/>\n<meta property=\"og:description\" content=\"Technology is the worst-performing sector this year. A lot of the weakness is at the top, but some smaller names are breaking out. Apple (AAPL), Nvidia (NVDA) and Microsoft (MSFT) are the three biggest technology stocks, accounting for more than 40 percent of the sector&#8217;s weighting. They&#8217;ve declined an average 7 percent so far this [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Insights\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TradeStation\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-04T21:20:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-04T21:28:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/ai_bull_btt_560505674.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"David Russell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Tech: Smaller Names Break Out as the &#039;Big 3&#039; Lag\" \/>\n<meta name=\"twitter:creator\" content=\"@TradeStation\" \/>\n<meta name=\"twitter:site\" content=\"@TradeStation\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Russell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/\",\"url\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/\",\"name\":\"Tech: Smaller Names Break Out as the 'Big 3' Lag\",\"isPartOf\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/ai_bull_btt_560505674.jpg\",\"datePublished\":\"2025-02-04T21:20:27+00:00\",\"dateModified\":\"2025-02-04T21:28:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/d2279ba57f90e3b47887f2503ce142d4\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#primaryimage\",\"url\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/ai_bull_btt_560505674.jpg\",\"contentUrl\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/ai_bull_btt_560505674.jpg\",\"width\":1920,\"height\":1080},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tradestation.com\/insights\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Tech: Smaller Names Break Out as the &#8216;Big 3&#8217; Lag\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#website\",\"url\":\"https:\/\/www.tradestation.com\/insights\/\",\"name\":\"Market Insights\",\"description\":\"Fresh market commentary and actionable trade ideas.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tradestation.com\/insights\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/d2279ba57f90e3b47887f2503ce142d4\",\"name\":\"David Russell\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/443bdca82f0006231c5179581e4310ed?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/443bdca82f0006231c5179581e4310ed?s=96&d=mm&r=pg\",\"caption\":\"David Russell\"},\"description\":\"David Russell is Global Head of Market Strategy at TradeStation. Drawing on more than two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories \u2013 especially those overlooked by other commentators. He\u2019s also a big fan of generating leverage with options to limit capital at risk.\",\"url\":\"https:\/\/www.tradestation.com\/insights\/author\/drussell\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Tech: Smaller Names Break Out as the 'Big 3' Lag","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/","og_locale":"en_US","og_type":"article","og_title":"Tech: Smaller Names Break Out as the 'Big 3' Lag","og_description":"Technology is the worst-performing sector this year. A lot of the weakness is at the top, but some smaller names are breaking out. Apple (AAPL), Nvidia (NVDA) and Microsoft (MSFT) are the three biggest technology stocks, accounting for more than 40 percent of the sector&#8217;s weighting. They&#8217;ve declined an average 7 percent so far this [&hellip;]","og_url":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/","og_site_name":"Market Insights","article_publisher":"https:\/\/www.facebook.com\/TradeStation\/","article_published_time":"2025-02-04T21:20:27+00:00","article_modified_time":"2025-02-04T21:28:14+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/ai_bull_btt_560505674.jpg","type":"image\/jpeg"}],"author":"David Russell","twitter_card":"summary_large_image","twitter_title":"Tech: Smaller Names Break Out as the 'Big 3' Lag","twitter_creator":"@TradeStation","twitter_site":"@TradeStation","twitter_misc":{"Written by":"David Russell","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/","url":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/","name":"Tech: Smaller Names Break Out as the 'Big 3' Lag","isPartOf":{"@id":"https:\/\/www.tradestation.com\/insights\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#primaryimage"},"image":{"@id":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#primaryimage"},"thumbnailUrl":"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/ai_bull_btt_560505674.jpg","datePublished":"2025-02-04T21:20:27+00:00","dateModified":"2025-02-04T21:28:14+00:00","author":{"@id":"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/d2279ba57f90e3b47887f2503ce142d4"},"breadcrumb":{"@id":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#primaryimage","url":"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/ai_bull_btt_560505674.jpg","contentUrl":"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/ai_bull_btt_560505674.jpg","width":1920,"height":1080},{"@type":"BreadcrumbList","@id":"https:\/\/www.tradestation.com\/insights\/2025\/02\/04\/smaller-names-break-out\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tradestation.com\/insights\/"},{"@type":"ListItem","position":2,"name":"Tech: Smaller Names Break Out as the &#8216;Big 3&#8217; Lag"}]},{"@type":"WebSite","@id":"https:\/\/www.tradestation.com\/insights\/#website","url":"https:\/\/www.tradestation.com\/insights\/","name":"Market Insights","description":"Fresh market commentary and actionable trade ideas.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tradestation.com\/insights\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/d2279ba57f90e3b47887f2503ce142d4","name":"David Russell","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/443bdca82f0006231c5179581e4310ed?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/443bdca82f0006231c5179581e4310ed?s=96&d=mm&r=pg","caption":"David Russell"},"description":"David Russell is Global Head of Market Strategy at TradeStation. Drawing on more than two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories \u2013 especially those overlooked by other commentators. He\u2019s also a big fan of generating leverage with options to limit capital at risk.","url":"https:\/\/www.tradestation.com\/insights\/author\/drussell\/"}]}},"_links":{"self":[{"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/posts\/63130"}],"collection":[{"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/comments?post=63130"}],"version-history":[{"count":22,"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/posts\/63130\/revisions"}],"predecessor-version":[{"id":63157,"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/posts\/63130\/revisions\/63157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/media\/63139"}],"wp:attachment":[{"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/media?parent=63130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/categories?post=63130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tradestation.com\/insights\/wp-json\/wp\/v2\/tags?post=63130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}