Not all tech is created equal, as this earnings season is showing, with multiple areas from chips to software getting hit. Even FANG component Netflix wasn’t spared due to a miss on subscribers. Today, Microsoft is falling despite a topping expectations because its revenue forecast pointed to a potential slowing in growth.
Heading into tomorrow’s slew of reports, FANG-related stocks don’t have an airtight track record. Apple’s results may not save the day, if history’s any guide. July was a special case as big tech earnings surged amid the pandemic. But since then, the Nasdaq 100 has lost some of its might, as growth lags the Russell 2000. With valuations still lofty, investors may punish any hint of weakness.
Tech’s biggest short-term catalyst might be a resumption of heavy haven flows if this week’s rout starts to look more like February. And we’re not there yet.
Heading into tomorrow’s slew of reports, FANG-related stocks don’t have an airtight track record. Apple’s results may not save the day, if history’s any guide. July was a special case as big tech earnings surged amid the pandemic. But since then, the Nasdaq 100 has lost some of its might, as growth lags the Russell 2000. With valuations still lofty, investors may punish any hint of weakness.
Tech’s biggest short-term catalyst might be a resumption of heavy haven flows if this week’s rout starts to look more like February. And we’re not there yet.