In the aftermath of reckless behavior by chief executives, how much (if any) money should they be paid going forward, and should any previous payments be clawed back?
Microsoft's (NASDAQ: MSFT) recent $69 billion bid to buy Activision Blizzard (NASDAQ: ATVI) highlights the value behind the companies that make video games. With big tech increasingly talking up the metaverse opportunity, companies with talented software engineers are going to be in high demand, and are naturally in the best position to capitalize on the development of these virtual worlds. Of course, Activision shareholders are probably wondering where to invest next.
Since the financial crisis, growth stocks have dominated value stocks and produced the bulk of market gains. The top seven largest companies in the S&P 500 are all big tech firms like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), while the top 10 largest S&P 500 components contributed around half of the entire S&P 500's gain in 2021. A stock market led by growth can be explosive, but a stock market led by value offers many investors a more attractive risk-reward profile.