
The tech sector is dominating the markets.
The five largest companies in the United States by market cap are now all technology companies, as of Thursday. One stands out: Amazon, according to MKM Partners Managing Director Rob Sanderson.
In an interview Friday on CNBC's "Squawk Alley," the senior research analyst called Amazon's explosive recent success "the best growth story of the group."
Sanderson cited Amazon Prime as a main source for an expected jump in profits in the third quarter. Amazon shares set a new high Thursday, peaking at $805.89. On Friday, it was trading at $803.74.
"Sellers [on Amazon.com] are understanding that they need to be Prime-eligible," he said.
Bob Peck, internet equity analyst and managing director at SunTrust Robinson Humphrey, also noted the divide between investor bases for Amazon and the four other leading companies: Apple, Alphabet, Microsoft and Facebook. Alphabet's Google, he said, is "much more of a value story," whereas Facebook and Amazon are experiencing considerable momentum and growth.
But should all of these diverse companies coexist in one seemingly all-encompassing sector?
"All of them are, I think, attacking different incumbent industries using technology ... to deliver a value proposition to users in a more efficient and more effective way," Sanderson said. "I really think it's more diversified than all the eggs in one sector."