If investors were really disappointed, you would have something similar to Twitter, whose stock crashed over 14 percent on Thursday. This is a company which beat earnings expectations but failed to grow users. It hasn’t been able to convince its investors that the growth will come in the future.

This is different to the larger giants: Netflix, Amazon, Google, and Facebook. Netflix is planning to spend $6 billion on content this year. Amazon’s spending was up 28 percent alone in the second quarter, while Facebook said costs would rise as much as 45 percent in 2017.
It’s easy to think that these rising costs coupled with worries over the growth rates of some companies, like Facebook for example, should raise questions about valuations.

But as one investor told me last week, “forget about valuations, just own the damn thing.”
It’s a mentality that is prevalent across tech investing. The majority of analysts have buy or strong buy recommendations on the large technology stocks and that’s because these companies have convinced investors of their long-term prospects.

As investors, everyone knows that Amazon really doesn’t care about the bottom line,” Michael Yoshikami, founder of Destination Wealth Management, told CNBC after the e-commerce giant’s earnings last week.

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