The big loser at the Congress hearing grilling the top 4 CEOs in big tech was by far and away the U.S. government.

The U.S. government accused big tech of operating as illegal monopolies and big tech’s answer was largely indifference, betting that the government is too disjointed to actually hit them with some venom.

The only member of congress who was on point with her questions was Democratic Rep. Pramila Jayapal, who used internal Facebook documents to show data theft artist Mark Zuckerberg suppressing competition when he purchased Instagram in 2012.

Jayapal then cornered Amazon (AMZN) CEO Jeff Bezos into a corner, peppering him with questions about Amazon’s 3^rd party data handling.

There has been a long-lasting campaign against Amazon in regard to them using internal data to hijack 3^rd party sellers’ products deemed successful by recreating them as in-house products and catapulting their in-house branded products to the top of the Amazon search results.

The success of Congress stopped at Jayapal, as the rest of the motley crew appeared so out of touch with what real tech issues exist that it felt they were unfit to ask questions.

Playing into their inefficient display was the fact that they chose a time delegated for antitrust issues to complain about anti-conservative bias in social media, which is a separate issue entirely.

These arguments were armed with zero data to back up the claims, and gave the tech leaders an easy way out by just grandstanding about the issue. 

The biggest winner was the company that was not invited to the session – Microsoft (MSFT).

They were the only tech company over $1 trillion that wasn’t in attendance, and for good reason.

Microsoft CEO Satya Nadella has been able to position the company as a trust-first cloud enterprise and refuse to traverse into that gray area where conflicting interests exist.

They are living proof that tech companies don’t need to swindle personal data to grow revenue, which is why I keep putting on call spreads in this brilliant company.

Microsoft is in great strategic position to expand their business, and the same cannot be said for Facebook because unlike Microsoft, Facebook produces nothing of meaningful substance.

This was evident as Congress picked on Zuckerberg’s company the most, even catching him in a bold face lie.

The most convenient line of reasoning for these tech companies doing what they do was the “American-first” playbook.

Highlighting China’s rise as tech competitor, fearmongering that China could one day be at the top of the tech pyramid but actually just demonstrating another way of avoiding the real issues.  

Watching this discussion made me realize that these tech companies have reached a level of power that supersedes the government.

Politicians are only invested  in short-term interest and protecting their tenure in government. Bezos, Zuckerberg, Cook, and Pichai can play the long game.  

This is exactly why investors pour capital into these 4 stocks plus Microsoft.

Apple earns over $55 billion in profits annually on $260 billion of revenue.

Amazon makes up 40% of U.S. online sales.

Facebook (FB) has 2.6 billion users which is 34% of the world’s population.

Lastly, 90% of internet searches are done through Google (GOOGL) search.

The real question should be: when will these companies hit the $2 trillion mark?

And even if Congress could conjure up some meaningful regulation against these 4, they certainly have the resources to navigate around it, especially when half of Congress still doesn’t understand what they actually do.

As it stands, these data empires are left to go their merry way and Congress is failing to protect individual user data on an epic scale.

To put the cherry on top, I would argue that the coronavirus has done big tech’s dirty work wiping out many businesses while big tech gets stronger.

I am bullish big tech.

Today’s tech newsletter might be the most important one you will ever read.

It’s my job to distill exactly what is going on in tech and disburse this information in a way that readers can take advantage of it in real-time.

The tech market is all about striking when the soil is fertile.

The five largest stocks in the S&P 500, Microsoft (MSFT), Amazon (AMZN), Apple (AAPL), Google (GOOGL), and Facebook (FB) have accrued a combined valuation that surpasses the valuations of the stocks at the bottom 350 of the index.

This means that if you weren’t in tech the past few years, chances are that your portfolio significantly underperformed the broader market.

Even in August 2018, many active managers could have thrown in the towel and said the late economic cycle was way too frothy for their taste and time to take profits.

Little did they know that betting against the best growth industry in the last 2 generations would equate to self-firing themselves, because to replicate the same type of performance would have meant staying in tech through the coronavirus scare.

Many in the trading community would even go as far as to say to wait for the bear market, then big tech would get hammered first and deepest because of their lofty valuations.

These tech companies were in for a rude awakening and shares had to consolidate, right?

Well, anyone who doesn’t live under a rock is seeing the exact opposite play out with Amazon, Microsoft, and Apple valued above $1 trillion and still soaring as we speak.

This goes to show that betting against something because they are “too expensive” or “too cheap” is a fool’s game.

Just take oil for instance, that many retail investors bought because they came to the conclusion that oil could never go below zero.

Then playing oil through an ETF with massive contango meant that the index is likely to go down even if the price of oil is up.

Not only do investors bear insanely high risk in these trading vehicles, but also a systemic risk of oil ETFs blowing up.

Oil is cheap, and it can get cheaper, while tech is expensive and can get a lot more expensive.

Until there are structural changes, there is no point to bet on a sudden reversal out of thin air.

The “reversion to the mean” trade can blow up in your face if used irresponsibly.

Betting against things that an individual perceives as unsustainable and secretly hoping that they cannot continue to go on is probably the worst strategy that I have ever heard of in my life.

The reality is that these things are sustainable, and tech shares will keep moving higher uninterrupted until they don’t.

"Until they don’t" would mean meaningful structural damage to big tech’s business model, which I do not see one iota in today’s business climate.

In fact, these companies just keep going from strength to strength.

Active managers are the ones who set market prices and they help the momentum accelerate in tech with full knowledge that if they miss out, there is likely no other solution to hit yearend targets.

What active manager doesn’t want their year-end bonus?

Even analyze the value investors who, in a normal world, would not even consider tech companies because they avoid the traditional “growth” profile.

Funnily enough, these “value” investors have Microsoft in their portfolios now, even though it is not close to a value stock.

So what has Microsoft accomplished recently?

CEO of Microsoft Satya Nadella has rebuilt a company Microsoft that is now equal in value to The Financial Times Stock Exchange 100 Index, the share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization.

That’s right, one American company is just as valuable as the top 100 public companies in England.

Even more hilarious, Jeff Bezos’s wealth is greater than the entire European country of Hungary.

Yes, the one south of Poland that serves goulash as the national cuisine.

An even broader view of tech would give us an even more stunning snapshot of the success showing that the Top 5 tech stocks are now worth more than the entire developed stock market outside the U.S. such as Europe, Canada, Japan, Hong Kong combined.

Then take into consideration that these companies are on the cusp of penetrating high margin industries like medicine and healthcare which will translate into another golden decade of accelerating revenue and elevated profits relative to the rest of the S&P index.

The U.S. is a place where unfettered capitalism is promoted and implemented, and tech’s outperformance manifests itself by pouncing on the winner-takes-all mentality.

Americans like winners and the rules are no different in corporate America.

These 5 tech names have contributed over 20% of the gains in the past month and until they falter, there will be no tech sell-off.