(Note: The author of this fundamental analysis is a financial writer and portfolio manager. He and his clients own shares of GOOGL.)

The technology sector went nuts on Friday midway through the day, after huge earning reports from Amazon.com Inc (AMZN), Alphabet Inc. (GOOGL), and Microsoft Corp. (MSFT) sent the group sharply higher.

The tech-heavy Nasdaq Composite was soaring by over 1.75 percent, with Amazon up by nearly 12 percent to just over $1,080. That spike added almost $50 billion to Amazon's market cap, taking it to roughly $520 billion. Alphabet shares jumped by nearly 5.5 percent, adding approximately $40 billion to its market cap, putting it at $725 billion.

And Microsoft soared by almost 7 percent, adding about $40 billion to its market capitalization, taking it to $650 billion. The move in these three companies combined to create nearly $130 billion in market cap, in just one day! Huge. 

The stock surges came after the companies all blew past earnings estimates, making it look too easy. Amazon reported EPS of $0.52, versus expectations for a breakeven quarter ($0.00). Alphabet beat EPS estimates by nearly 14 percent, reporting $9.57, while Microsoft beat EPS by almost 16.5 percent, reporting $0.84.  This trio didn't just beat on EPS; their revenue also topped expectations. 

Amazon Is Crushing It

Amazon's stock price went into the stratosphere on Friday. Its stock chart looked insane, easily breaking to new all-time highs and clearing every single resistance level as if they never even existed. 

Alphabet Hit All-Time High

Alphabet was the same, racing to new all-time highs and crossing through resistance as if were a sheet of paper. 

Microsoft All-Time High

Microsoft smoothly rose to new all-time highs, just like the other two stocks. (See also: Microsoft Worth $600B: First Time Since Dot-com Boom.)

All three tech stocks were fueled by substantial top-line and bottom-line growth, and except for Amazon, have relatively low valuation based on earnings multiples. With Alphabet at 25 times and Microsoft at 23 times one-year forward earnings estimates, Amazon trades at just 2.3 times 2019 revenue estimates. Overall, these companies are surging higher on strong earnings, trading at all-time highs, and are still not even expensive. 

One can say they are cheap because the strong results are going to cause analysts and Wall Street to go back to their models and update numbers, resulting in analysts raising their revenue and earnings estimates for future quarters. That, in turn, will bring down multiples despite the rising stock prices. 

These stocks have all had a fantastic 2017, and there should be little doubt as to why. 

Michael Kramer is the Founder of Mott Capital Management LLC, a registered investment adviser, and the manager of the company's actively managed, long-only Thematic Growth Portfolio. Kramer typically buys and holds stocks for a duration of three to five years. Click here for Kramer's bio and his portfolio's holdingsInformation presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future performance.