Amazon soared 15 percent early Friday after revealing details about its cloud computing service for the first time. Google and Microsoft also rose after reporting their latest quarterly results.
 
Technology is the largest single segment of the market, eclipsing all others (including the financial sector and the industrials sector). Still, Investors need to be careful about picking the best technology stocks.
 
In a market where investors have been rewarding stocks whether they reach their targets or not, it will be important to find technology stocks that can justify their valuations. Those that can’t will get hammered.