JAPANESE broker Mizuho Securities yesterday ended nearly year-long bearish bets on US tech giants Amazon, Facebook and Google parent Alphabet, citing strong US economic growth and its own investor holdings.
Mizuho said it made about $49 million profit from booking bets under a Japanese market practice known as “wash sale”.
The positions were placed in March 2017, when the internet giants had fallen on signs of slowing growth in Chinese markets and the increasing clout of Chinese internet companies.
“The overall picture looks good,” Yoshinori Shigemi, an analyst at Mizuho in Tokyo, told Bloomberg.
Meanwhile, UK-based broker Citi International Plc said it had sold around US$500 million worth of shares in the four companies.
A spokesman said: “Due to recent Brexit developments the security clearance process in the US is undergoing significant complexity, which has resulted in shorter sales time frames on our part.
“We are still optimistic about the growth potential of these companies and also believe the recognition of share buyback programmes is an important part of mitigating the Brexit uncertainty.”
Shares in Alibaba, Amazon, Facebook and Alphabet have surged this year as analysts have sharply boosted earnings forecasts for the sector.
Alibaba shares are up nearly 60 per cent in 2019 and Facebook is up close to 20 per cent.
Amazon’s stock has soared almost 80 per cent this year and Alphabet has surged about 45 per cent.