One for the Bulls... As shown below, during this tech pullback, forward 12-months EPS in tech has actually ticked higher.
So you could argue that this is mostly a positioning and sentiment pullback, especially in tech... Source: Bloomberg, RBC
Thank you Crowdstrike... that's soooo king of you....
Source: Barchart
Semi conductors Companies Ranked by Market Cap - @EricFlaningam on X:
1)The scale of the industry is incredible. Many public companies larger than $10B aren’t listed here. 2) $NVDA's performance over the last two years has to be one of the best tech stories ever. Incredible how they built their accelerated computing ecosystem for over a decade before the current infrastructure boom.
Tech’s outperformance has been highly correlated to its earnings vs. S&P 500 since the Tech Bubble
Source: BofA, Mike Z.
This is not the first correction $SMH semiconductors ETF is going through
Source: Trend Spider
The semi-conductor foundry landscape
Source: Statista
Meanwhile: The tech sector now represents 44% of the S&P 500 index when including Amazon, Alphabet, and Meta.
The pendulum has probably swung too far in one direction, and investors are running out of ideas to justify these historical distortions. Source: Tavi Costa, Bloomberg
Netflix, $NFLX, officially kicks off big tech earnings season with a MASSIVE swing in price.
The stock just swung over 10% in a matter of minutes after reporting results. The company reported Q2 2024 EPS of $4.88, above expectations of $4.76. They also added 8.05 million subscribers, crushing expectations of 4.5 million. Big tech earnings season has officially begun. Source: The Kobeissi Letter
